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Bureau of Mines Information Circular/1987 



Bureau of Mines Cost Estimating 
System Handbook 

(In Two Parts) 

1. Surface and Underground Mining 

Compiled by Staff, Bureau of Mines 




UNITED STATES DEPARTMENT OF THE INTERIOR 




Information Circular 9142 



Bureau of Mines Cost Estimating 
System Handbook 

(In Two Parts) 

1 . Surface and Underground Mining 

Compiled by Staff, Bureau of Mines 



UNITED STATES DEPARTMENT OF THE INTERIOR 
Donald Paul Hodel, Secretary 

BUREAU OF MINES 

David S. Brown, Acting Director 







Library of Congress Cataloging-in-Publication Data 



Bureau of Mines cost estimating system handbook. 

(Information circular/United States Department of the Interior, Bureau of Mines; 
9142-9143) 

Includes bibliographies. 

Supt. of Docs, no.: I 28.27:9142-9143. 

Contents: 1. Surface and underground mining — 2. Mineral processing. 

1. Mining engineering — Costs. I. United States. Bureau of Mines. II. Series: 
Information circular (United States. Bureau of Mines); 9142-9143. 



TN295.U4 
[TN274] 



no. 9142-9143 



622 s [338.2'3] 87-600163 






Ill 

FOREWORD 

Need for the Handbook 

A computerized mineral inventory system to help the United States Government 
appraise critical shortages of materials has been eatablished. This involves eval- 
uation of mineral deposits using the Bureau of Mines Minerals Availability System 
(MAS). The MAS is concerned with costing mineral occurrences where it is unknown, 
if they can be mined and/or processed at a profit. Therefore a consistent function- 
al method of costing both mining and mineral processing is a requirement of the fin- 
ancial analysis phase of MAS. The objective of this handbook is to develope a man- 
ual method for preparation of feasibility type estimates for capital and operating 
costs of mining and primary mineral processing of various types of mineral occur- 
rences using state-of-the-art technology. 

Use of the Handbook 

This handbook has been developed for a user with knowledge and experience in 
both mining and estimating procedures. The user should not use this handbook to try 
to determine the cost of any single component of a mining or mineral processing sys- 
tem. The combination of components will produce a reliable feasibility type esti- 
mate which should fall within 25 percent of expected actual cost. The estimated 
values from the use of the handbook are not intended to duplicate any specific min- 
eral producer's capital or operating costs. Individual component costs may vary. 



CONTENTS 

Page 

Abstract -. 1 

Introduction 2 

Evolution of CES 2 

Methodology 4 

Capital cost 4 

Construction cost 4 

Purchased equipment 5 

Transportation 6 

Adjustment factors 6 

Operating costs 6 

Labor 7 

Supplies 7 

Equipment operation 8 

Adjustment factors 8 

Infrastructure 8 

Cost updating 8 

Cost indexes 9 

Estimating procedure 11 

Guidelines for surface mining 12 

Mining system design 13 

Guidelines for underground mining 14 

Geometry 15 

Geology 15 

Economics 15 

Other parameters 16 

Mining system design 17 

Other mining methods 20 

Example application of CES - Vertical crater retreat (VCR) mining 21 

Operating labor 21 

Operating supplies 21 

Equipment operation 22 

Adjustment factors 22 

Rock hardness factors 22 

Backfilled stope factor 22 

Summation of costs 23 

ENVIRONMENTAL— CAPITAL COSTS 

Environmental assessments and environmental impact statements, by 

David K. Denton , Jr 28 

SURFACE MINING— CAPITAL COSTS 

Exploration, by Ted Lowe 30 

Preproduction development 42 

Clearing, by Alan G. Hite 42 

Drill and blast overburden and waste , by Alan G. Hite 46 

Excavation , load and haul overburden and waste 50 

Bucket wheel excavation, by Pincock, Allen & Holt 50 

Dragline , by Alan G. Hite 53 

Electric shovel and trucks, by Alan G. Hite 56 



vi 

SURFACE MINING— CAPITAL COSTS— Continued 

Page 
Pre product ion development — Continued 

Excavation, load and haul overburden and waste — Continued 

Front-end loader or diesel shovel and trucks, by Alan G. Hite 59 

Hydraulic mining, by Pincock, Allen & Holt 62 

Scrapers, by Alan G. Hite 65 

Mining equipment 

Excavation, load and haul ore 68 

Bucket wheel excavators, by Pincock, Allen & Holt 68 

Dragline, by Alan G. Hite 71 

Dredge , by Francisco Amaro . 74 

Electric shovel and trucks, by Alan G. Hite 77 

Front-end loader or diesel shovel and trucks, by Alan G. Hite 79 

Hydraulic mining, by Pincock, Allen & Holt 82 

Scrapers, by Alan G. Hite 85 

Transportation 87 

Aerial tramway, by Pincock, Allen & Holt 87 

Airstrip construction, by Ted Lowe 89 

Railroad construction, by Lee M. Osmonson 92 

Long distance surface conveyor, by Alan G. Hite 95 

Slurry pipeline, by Pincock, Allen & Holt 98 

Mine plant general operations 101 

Communications system, by Tamera J. Frandsen 101 

Electrical system, by Michael R. Daley 103 

Fueling system, by Tamera J. Frandsen 106 

Offices and laboratories, by Barbara J. Roberson 108 

Portable power generation, by Michael R. Daley 113 

Repair shops and warehouses, by Barbara J. Roberson 116 

Stockpile storage facilities, by Dave Denton 120 

Surface buildings, by Barbara J. Roberson 122 

Water and drainage system, by Francisco Amaro 126 

Drainage system 126 

Water supply system 129 

Infrastructure 132 

Access Roads, by Lee M. Osmonson 132 

Clearing 132 

Drill and blast 136 

Excavation 139 

Gravel surfacing 142 

Paving 145 

Main Power Lines, by Burt Gosling 148 

Townsite, by Nathan T. Lowe 152 

Waste water treatment, by Nathan T. Lowe 154 

Clarification 154 

Neutralization 156 

Restoration during construction, by Alan G. Hite 160 

Engineering and construction management fees, by Barbara J. Roberson 163 

Working Capital, by David K. Denton, Jr 165 

SURFACE MINING— OPERATING COSTS 

Production Development 

Clearing, by Alan G. Hite 166 



vii 

SURFACE MINING— OPERATING COSTS— Continued 

Page 
Production development — Continued 

Core drilling, by Alan G. Hite 169 

Drill and blast overburden and waste , by Alan G. Hite 170 

Excavation, load and haul overburden and waste 174 

Bucket wheel excavation, by Pincock, Allen & Holt 174 

Dragline, by Alan G. Hite 177 

Electric shovel and trucks, by Alan G. Hite 180 

Front-end loader or diesel shovel and trucks, by Alan G. Hite 183 

Hydraulic mining, by Pincock, Allen & Holt 186 

Scrapers, by Alan G. Hite 189 

Mining of Ore 192 

Drill and blast ore , by Alan G. Hite 192 

Excavation, load and haul ore 196 

Bucket wheel excavation, by Pincock, Allen & Holt 196 

Dragline, by Alan G. Hite 199 

Dredging , by Francisco Amaro 203 

Electric shovel and trucks , by Alan G. Hite 206 

Front-end loader or diesel shovel and trucks, by Alan G. Hite 209 

Hydraulic mining, by Pincock, Allen & Holt 212 

Transportation 215 

Aerial tramway 215 

Long distance rail haulage, by Alan G. Hite 218 

Long distance surface conveyor, by Alan G. Hite 221 

Long distance truck haulage , by Dale Avery 224 

Slurry pipeline, by Pincock, Allen & Holt 226 

Mine plant general operations 229 

General items — communications, sanitation, housekeeping, fire protection, and 

electrical, by Michael R. Daley 229 

Portable power generation, by Michael R. Daley 232 

Stockpile storage facilities , by David K. Denton , Jr 237 

Water and drainage system, by Francisco Amaro 240 

Drainage and disposal system 240 

Water supply system 243 

General expenses 246 

Administrative salaries and wages, by Joseph R. Soper, Jr 246 

Administrative purchases, by Joseph R. Soper, Jr 247 

Administrative equipment operation, by Joseph R. Soper, Jr 247 

Infrastructure, by Nathan T. Lowe 249 

Townsite-campsite 249 

Waste water treatment 255 

Clarification 255 

Neutralization 258 

Restoration during production, by Alan G. Hite 262 

UNDERGROUND MINING— CAPITAL COSTS 

Exploration, by Nathan T. Lowe 265 

Preproduction development 277 

Clearing, by Alan G. Hite 277 

Core drilling, by Burton B. Gosling 280 

Sinking shafts, by Tom Camm 282 



viii 

UNDERGROUND MINING— CAPITAL COSTS— Continued 

Page 
Preproduction development — Continued 

Drift development 285 

Small drifts for rail haulage, by C Thomas Hillman 285 

Small drifts for rubber-tired haulage, by C Thomas Hillman 288 

Medium drifts for rubber-tired haulage, by C. Thomas Hillman 291 

Large drifts for rail haulage , by C. Thomas Hillman 295 

Large drifts for rubber-tired haulage, C. Thomas Hillman 299 

Drift-tunnel boring, by Thomas W. Camm 302 

Raise development, by Scott A. Stebbins 304 

Driving raises • 304 

Drop raises 307 

Raise boring 310 

Inclines -declines, by Thomas W. Camm 314 

Large underground excavations, by Thomas W. Camm 317 

Ore pockets, by Thomas W. Camm 320 

Stope preparation, by Scott A. Stebbins 323 

Block caving 324 

Continuous mining 327 

Cut and fill 328 

Longhole-sublevel 331 

Resuing 334 

Room & pillar 337 

Medium to hard rock 337 

Nonmetallic soft rock 340 

Shrinkage 343 

Square set 346 

Vertical crater retreat 349 

Mine dewatering , by Pincock , Allen & Holt 352 

Mine rehabilitation, by Pincock, Allen & Holt 356 

Mining equipment 359 

Hoisting facilities, by David K. Denton, Jr 359 

Drill, blast, and Miscellaneous equipment, by Thomas W. Camm 362 

Jacklegs 362 

Jumbos 364 

Continuous miners, by Thomas W. Camm 366 

Drift-tunnel boring machines, by Thomas W. Camm 368 

Conveyor haulage equipment , by Thomas W. Camm * 370 

Conveyor extensions, by Thomas W. Camm 372 

Load -haul -dump haulage equipment, by Thomas W. Camm 374 

Rail haulage equipment, by Thomas W. Camm 376 

Truck haulage equipment , by Thomas W. Camm 378 

Transportation 380 

Railroad construction, by Lee M. Osmonson 380 

Long-distance surface conveyor, by Alan G. Hite 383 

Mine plant general operations 386 

Communications system, by Burton B. Gosling 386 

Compressed air facilities , by David K. Denton, Jr 388 

Electrical system, by Burton B. Gosling 391 

Fueling system, by Scott A. Stebbins 394 

Offices and laboratories, by David K. Denton, Jr 397 

Portable power generation, by Michael R. Daley 402 

Repair shops and warehouses, by Davi K. Denton, Jr 405 



ix 

UNDERGROUND MINING— CAPITAL COSTS— Continued 

Page 
Mine plant general operations — Continued 

Stockpile storage facilities , by David K. Denton , Jr 411 

Surface buildings, by Dale W. Avery 413 

Ventilation system, by David K. Denton, Jr 418 

Water and drainage system 421 

Drainage and disposal system , by Dale W . Avery 421 

Water supply system (makeup water), by David K. Denton, Jr 424 

Infrastructure 427 

Access roads, by Lee M. Osmonson 427 

Clearing 427 

Drill and blast 431 

Excavation 435 

Gravel surfacing 438 

Paving 441 

Main power lines , by Burton B. Gosling 444 

Townsite, by Nathan T. Lowe 448 

Waste water treatment , by Nathan T. Lowe 450 

Clarification 450 

Neutralization 452 

Engineering and construction management fees , Nathan T. Lowe 455 

Working Capital , by David K. Denton , Jr 457 

UNDERGROUND MINING— OPERATING COSTS 

Production development 458 

Core drilling, by Burton B. Gosling 458 

Sinking shafts , by Thomas W. Camm 460 

Drift development 463 

Small drifts for rail haulage, by C. Thomas Hillman 463 

Small drifts for rubber-tired haulage, by C. Thomas Hillman 466 

Medium drifts for rubber-tired haulage, by C. Thomas Hillman 469 

Large drifts for rail haulage , by C. Thomas Hillman 473 

Large drifts for rubber-tired haulage, by C. Thomas Hillman 477 

Drift-tunnel boring, by Thomas W. Camm 480 

Raise development , by Scott A. Stebbins 482 

Driving raises 482 

Drop raises 485 

Raise boring 488 

Inclines -declines, by Thomas W. Camm 492 

Large underground excavations , by Thomas W. Camm 495 

Stope preparation, by Scott A. Stebbins 498 

Block caving 499 

Continuous mining 502 

Cut and fill 503 

Longhole-sublevel 506 

Resuing 509 

Room & Pillar 512 

Medium to hard rock 51 2 

Nonmetallic soft rock 515 

Shrinkage 51 8 

Square set 521 

Vertical crater retreat 524 



UNDERGROUND MINING—OPERATING COSTS— Continued 

Page 

Mining 527 

Block caving, by Scott A. Stebbins 527 

Gravity method 527 

Load -haul -dump method 529 

Slusher method 532 

Continuous mining, by Thomas W. Camm* 534 

Cut and fill, by Thomas W. Camm 537 

Longhole, by Thomas W. Camm 540 

Resuing, by Pincock, Allen & Holt 543 

Room and Pillar, by Scott A. Stebbins 546 

Medium to hard rock 546 

Nonmetallic soft rock 549 

Shrinkage, by Thomas W. Camm 552 

Square set, by Thomas W. Camm 555 

Vertical crater retreat, by Scott A. Stebbins 558 

Mine haulage 561 

Hoisting, by David K. Denton, Jr 561 

Conveyor haulage , by Burton B . Gosling 566 

Load-haul -dump haulage , by Burton B. Gosling 569 

Rail haulage, by David K. Denton, Jr 572 

Main line 572 

Multilevel 577 

Truck haulage , by Dale W . Avery 580 

Transportation 584 

Long-distance rail haulage, by Dale W. Avery 584 

Long-distance surface conveyor, by Alan G. Hite 587 

Long-distance truck haulage, by Dale W. Avery 590 

Mine plant general operations 592 

Compressed air facilities, by David K. Denton, Jr 592 

General items — communications, sanitation, housekeeping, fire protection, and 

electrical , by Michael R. Daley 595 

Portable power generation, by Michael R. Daley 597 

Stockpile storage facilities, by David K. Denton, Jr 602 

Ventilation system, by David K. Denton, Jr 605 

Water and drainage system 608 

Drainage and disposal system, by Dale W. Avery 608 

Water supply system (makeup water), by David K. Denton Jr 611 

General expense, by David K. Denton, Jr 614 

Administrative salaries and wages, by David K. Denton, Jr 614 

Administrative purchases, by David K. Denton, Jr 615 

Administrative equipment operation, by David K. Denton, Jr 615 

UNDERGROUND MINING— OPERATING COSTS 

Infrastructure, by Nathan T. Lowe 617 

Townsite-campsite 617 

Waste water treatment 623 

Clarification 623 

Neutralization 626 

Appendixes . — Reference tables 630 



XI 

ILLUSTRATIONS 

Page 
1. Vertical crater retreat mining method 19 

TABLES 

Page 

1. Construction labor job classifications and hourly wage rates 5 

2. Operating labor job classifications and hourly wage rates 7 

3. Base case supply costs 8 

4. U.S. cost indexes, 1980 - 1985 10 

5. Surface mining methods 14 

6. Guidelines for the selection of mining methods 15 

7. Underground mining methods 20 



xii 



UNIT OF MEASURE ABBREVIATIONS USED IN THIS REPORT 



bank, m^ 

cm 

°C 

°F 

ft 

gal 

gal/d 

h 

h/d 

ha 

ha/d 

hp 

Hz 

in 

kg 

kg/cm 2 

kg/m 3 

kg /ha 

kg/mt 

km 

km/d 

km 2 

km 2 /d 

kPa 

kV 

kVA 

kW 

kW'h 

L/s 

(L/s)/m2 



bank cubic meter 

centimeter 

degree Celsius 

degree Farenheit 

foot 

gallon 

gallon per day 

hour 

hour per day 

mectare 

hectare per day 

horsepower 

hertz 

inch 

kilogram 

kilogram per square 

centimeter 
kilogram per square meter 
kilogram per hectare 
kilogram per metric ton 
kilometer 
kilometer per day 
square kilometer 
square kilometer per day 
kilopascal 
kilovolt 
kilovolt ampere 
kilowatt 
kilowatt hour 
liter per second 
liter per second per 

square meter 



lb 

lb/ft 2 

lb/ft 3 

lb /gal 

m 

m/d 

m/min 

m/yr 

m-* 

m 3 /d 

m 3 /h 

m 3 /m 

m 3 /mt 

m 2 

mg/L 

mtpd 

mtph 

mt *km 

mt /m 3 

mi/d 

mi /gal 

mph 

MPa 

MV'A 

MW 

Pa 

psi 

st 

yd 3 

yr 

V 



pound 

pound per square foot 

pound per cubic foot 

pound per gallon 

meter 

meter per day 

meter per minute 

meter per year 

cubic meter 

cubic meter per day 

cubic meter per hour 

cubic meter per meter 

cubic meter per metric ton 

square meter 

milligram per liter 

metric ton per day 

metric ton per hour 

metric ton kilometer 

metric ton per cubic meter 

mile per day 

mile per gallon 

mile per hour 

mega pascal 

megavolt ampere 

megawatt 

pascal 

pound per square inch 

short ton 

cubic yard 

year 

volt 



BUREAU OF MINES COST ESTIMATING SYSTEM HANDBOOK 

(In Two Parts) 

1. Surface and Underground Mining 

Compiled by Staff, Bureau of Mines 



ABSTRACT 

This Bureau of Mines report and its companion report (Information Circular 9143) 
have been prepared to assist in the preparation of prefeasibility type estimates for 
capital and operating costs of mining of various types of mineral occurrences using 
current technology. The handbook provides a convenient costing procedure based on 
the summation of the costs for the unit processes required in any particular mining 
or mineral processing operation. 

The costing handbook consists of a series of costing sections, each correspond- 
ing to a specific mining unit process. Contained within each section is the metho- 
dology to estimate either the capital or operating cost for that unit process. The 
unit process sections may be used to generate, in January 1984 dollars, costs 
through the use of either costing curves or formulae representing the prevailing 
technology. 

Coverage for surface mining includes dredging, quarrying, strip mining, and open 
pit mining. The underground mining includes individual development sections for 
drifting, raising, shaft sinking, stope development, various mining methods, under- 
ground mine haulage, general plant, and underground mine administrative cost. This 
system can be used for estimating cost data for an undeveloped deposit or for check- 
ing or verifying mining costs from a developed deposit, with a minimum amount of 
background information. 



INTRODUCTION 

The Interior Department's Bureau of Mines systematically measures and classifies 
identified domestic and foreign mineral resources according to their respective ex- 
traction technologies, economics, and commercial availability. To this end, the Bu- 
reau collects data on major mines and deposits worldwide and uses these data in est- 
imating and monitoring production costs and availabilities for 34 strategic mineral 
commodities. The estimation of production costs includes such items as capital ex- 
penditures and operating costs for mining and mineral processing operations, as well 
as transportation and infrastructure costs. A consistent method of costing is a re- 
quirement for such analysis. The cost estimation system (CES) has proven invaluable 
to the Burea's work, in this area. 

The CES handbook was developed in 1975 to assist in the preparation of prefeasi- 
bility type estimates for capital and operating costs of mining and benef iciation of 
various types of mineral occurrences using current technology. The system provided 
a convenient costing procedure based on the summation of the costs for the unit pro- 
cesses required in any particular mining or mineral processing operation. This edi- 
tion of the handbook is essentially a revision of the earlier effort, updated to re- 
flect the costs of technologies employed as of January 1984. To provide continuity, 
the numbering system used in the original handbook has been retained. 

The following are the 34 strategic commodities targeted for coverage by the up- 
dated costing handbook. 



Aluminum 

Antimony 

Asbestos 

Barium 

Beryllium 

Chromium 



Cobalt 

Columbium 

Copper 

Fluorspar 

Gold 

Graphite 



Hafnium 

Iron 

Lead 

Lithium 

Magnesium 

Manganese 



Mercury 

Molybdenum 

Nickel 

Phosphate 

Platinum 

Potash 



Rare earths 

Silver 

Sulfur 

Tantalum 

Thorium 

Tin 



Titanium 
Tungsten 
Zinc 
Zirconium 



The updated edition of the CES handbook consists of this Information Circular 
(IC) on surface and underground mining, and IC 9143 on mineral processing. 

EVOLUTION OF CES 

The first edition of the Bureau's Capital and Operating Cost Estimating System 
Handbook was prepared by STRAAM Engineers, Inc., Mining Division, under contract 
JO255026. The handbook was developed for use by individuals with knowledge and ex- 
perience in both mineral engineering and cost estimation. The handbook was designed 
to produce a reliable prefeasibility type estimate, acurate to within 25% of the ex- 
pected actual cost. 

The first edition was introduced in 1975 and, accordingly, the costs therein re- 
flected 1975 technology. In the decade since the introduction of the handbook, con- 
siderable technological change has taken place and mining mineral processing costs 
have been significantly affected. Further, other important developments such as de- 
creasing metal prices, rising labor costs, and environmental restraints have result- 
ed in a series of austerity measures effected by the management of many mineral op- 
erations. In view of these considerations, a complete revision of the handbook was 
warranted. 



In order to ensure adequate coverage of the 34 strategic commodities by the CES, 



it was necessary to reevaluate each cost section from the 1975 version of CES and 
also to develop a considerable number of new unit process sections. The task of up- 
dating and revising the manual was assigned primarily to three Bureau groups. The 
Intermountain Field Operations Center (Denver, CO) was assigned the responsibility 
of providing updated replacement sections for the majority of the surface mining and 
mineral processing unit operations contained in the original manual, while the Wes- 
tern Field Operations Center (Spokane, WA) held primary responsibility for updating 
and supplementing the sections for underground mining. Additionally, several new 
mineral processing unit operations were provided by both field centers. Finally, 29 
completely new unit operations were prepared by Pincock, Allen and Holt, Inc., under 
contract J0245002. The entire update project was coordinated by the Minerals Avail- 
ability Field Office (Denver, CO). 

The CES handbook consists of a series of costing sections, each corresponding to 
a specific mining or mineral processing unit process. Contained within each section 
is the methodology to estimate either the capital or operating cost for that unit 
process. The unit process sections may be used to generate costs through the use of 
either costing curves or formulas, depending on the option of the estimator. The 
cost curves are typically presented on a logarithmic scale of cost versus capacity 
and the corresponding cost formulas are (usually) of the form Y = A(X) , where X 
and Y represent the independent and dependent variables of size or capacity and 
cost, respectively. All cost estimation methodologies contained in this manual have 
been prepared in January 1984 dollars and represent the prevailing technology at 
that date. 

In the operating cost formulas and graphs presented for the various unit proces- 
ses throughout this handbook, the Y subscripts L, S, and E indicate labor, supplies, 
and equipment operation, respectively. None of the curves or equations in this 
handbook contain allowances for property and /or inventory taxes, general insurance, 
or depreciation. 

The reader will note that all cost equations and curves are linear, logarithmic, 
or exponential, and that associated with each cost section is a range of applicabil- 
ity. The data obtained within these stated limits are reliable, but the same cannot 
be said for costs obtained by extrapolation outside of these limits. In most cases, 
the upper and lower limits encompass production parameters for actual mining and 
mineral processing operations used in the preparation of the unit process sections 
with values beyond tending to fall outside the range of current technology. 

The data used in the development of this handbook were derived from information 
gleaned from a number of sources including industry contacts, Bureau equipment sup- 
pliers and vendors, files, and Government contractors. The major steps involved in 
the development were essentially the same for all unit processes and involved the 
following progression: 

1. Accumulation of data relating to each unit process through literature re- 
view, industry contacts, equipment vendors, etc. to provide the data base for deve- 
lopment of the capital and operating cost estimates. 

2. Determination of the types of the equipment for the unit process used in in- 
dustry as of January 1984, and the establishment of the range of capacities for 
which the unit process is employed. 



3. Selection of a minimum of three capacity data points for detailed cost ana- 
lysis and subsequent preparation of a bottom-up cost estimate for each data point. 
The majority of the data points corresponded to a capacity of an existing operation. 
In isolated cases where an existing operation of appropriate capacity could not be 
located, or because of insufficient data, the costs for an operation were modeled 
from the other estimates. In all cases, the limits of applicability stated for each 
section are within 15% of the maximum and minimum data points, respectively. 

4. Calculation of the costing formulas and drafting of the cost curves. Gene- 
rally, the costing formulas were derived through geometric regression analysis of 
the cost estimates prepared for each capacity, although a few curves are linear or 
exponential . 

5. Verification of the cost formula through comparison with actual data. The 
total facility costs projected by the handbook, have been demonstrated to fall within 
the limits of a prefeasibility estimate (i.e., within plus or minus 25% of actual 
costs). 

METHODOLOGY 

The CES handbooks for surface and underground mining and mineral processing are 
each divided into three major sections. The first of these sections, capital costs, 
involves the construction of the mine or mineral processing facility. The second 
section, operating costs, allows for the computation of the operating labor, sup- 
plies, and equipment operation of an existing or hypothetical operation. The last 
section, infrastructure, contains cost equations and curves for an assortment of in- 
frastructure items. 

Each cost generated by use of the costing handbook may be broken down into its 
respective subcomponents. A brief discussion on this aspect of the costing system, 
as applied to capital and operating costs, follows. 

Capital Cost 

The capital cost estimates were prepared to correspond to the actual range of 
capacities for which the unit processes are employed in industry. Detailed cost 
estimates were prepared for a minimum of three separate capacities covering this 
range. For the capital cost estimates, each unit process estimate was composed of 
the construction labor cost, the construction materials cost, a purchased equipment 
cost, and the cost of transportation. Each capital cost section gives a breakdown 
of these four components as a percentage of the total fixed capital cost for the 
unit process. 

Modest contingencies, generally ranging from 5% to 10%, were applied to cover 
incidental items not specifically addressed in the estimates for some of the capital 
cost sections. However, it must be stressed that this contingency was applied only 
in areas where there was a degree of uncertainty on the part of the evaluator pre- 
paring the cost section and it must not be inferred that an overall blanket contin- 
gency has been applied. 

Construction Labor 

Construction labor costs were estimated from worker-hour requirements for each 
unit operation for each capacity studied. Average labor costs were determined from 



local union wage rates for a variety of job classifications common to mineral indus- 
try construction. The average labor wage rates applied to the worker-hour estimates 
include labor burden and fringe benefits of 21% of the base wage rate. For this 
analysis, the construction labor burden and fringe benefits have been assumed to in- 
clude the employer's contribution to union funds for health and welfare, vacations, 
holidays, sick leave, retirement, Social Security (FICA), Federal Unemployment In- 
surance, (FUI), State Unemployment Insurance (SUI), and Workmen's Compensation. 

A shift adjustment factor has been included in some of the capital cost estima- 
tion sections for mining, since it is conceivable that certain operations may ope- 
rate either one or three shifts per day. Since the base case sections were designed 
for two-shif t-per-day operation, it was necessary to include a mechanism for adjust- 
ing the cost per day total for an alternative operating schedule. The job classifi- 
cations and associated base wage rates used in the computation of the construction 
labor component of the capital costs are presented in table 1. 

Table 1. — Construction labor job classifications and hourly wage rates 

Job Wage_l 

Boilermaker , journeyman $21 . 00 

Boilermaker, apprentice 17.32 

Carpenter, journeyman 20. 50 

Carpenter, apprentice 15.89 

Concrete finisher, journeyman 21.40 

Concrete finisher, apprentice 15.88 

Electrician, journeyman 23.11 

Electrician, apprentice 12.71 

Equipment operator 19.15 

Equipment operator, apprentice 15.80 

Ironworker , journeyman 22 . 08 

Ironworker, apprentice 16.01 

Laborer 12.71 

Millwright , journeyman 22.52 

Millwright , apprentice 17. 27 

Painter, journeyman 19.23 

Painter, apprentice 14.34 

Pipefitter, journeyman 20.90 

Pipefitter, a pprentice 13.71 

1 Includes 21% burden and fringe benefits. 

Construction Materials 

The estimates for construction materials include support steel, steel reinforc- 
ing bars, concrete, sand and gravel, timber, etc. Also included are small hand- 
tools, welding rods, and other miscellaneous equipment. It was generally assumed 
that construction materials are readily available at the mine or construction site 
and that the freight cost associated with these materials is negligible. 

Purchased Equipment 

In the capital cost sections for both mining and mineral processing unit opera- 
tions, purchased equipment refers to the major mining or process equipment directly 
associated with the operation. The development of the capital cost estimates for 
each unit process included the construction of a major equipment lists with the 



equipment sized according to the capacities analyzed. 

Transportation 

Transportation, or freight, costs have been estimated using the basis of a mid- 
western (Denver, CO) mine or construction site. In most cases, freight costs were 
estimated using the nearest supplier-vendor for each piece of equipment to calculate 
the total distance for the shipment. Average transportation rates were then applied 
to the distance to calculate the cost of transporting the major equipment items from 
the manufacturer to the construction site. In each capital cost section, the per- 
centage of the fixed capital cost for the particular unit operation is given and can 
be applied to the cost generated by the costing formulas (or curve) to derive the 
transportation cost. 

A uniform 4% sales tax was applied to the total fixed capital cost for each unit 
operation. This approach reflects the construction of a green- field mine or mine- 
ral processing facility by an independent contractor. If the sales tax for the area 
being estimated differs from the standard 4%, then the appropriate adjustment to the 
total capital cost should be made. 

Adjustment Factors 

Many unit process sections contain one or more adjustment factors that may be 
used to address circumstances other than those assumed for the develop- ment of the 
cost section. These factors are generally multiplied by the product of the cost 
formula (or the cost taken directly from the curve) to obtain a cost representative 
of these special circumstances. 

All curves in this handbook have been adjusted to a common base with every ef- 
fort having been made to present data representative of a typical application of the 
particular mining method or benef iciation process under consideration. Often, how- 
ever, the estimator will be privy to information that can substantially upgrade the 
quality of the estimate through the judicious application of adjustment factors. In 
order to properly apply the adjustment factors, the estimator must be capable of 
discerning any differences between the method or process under consideration and 
that presented in this handbook. When the estimator encounters an abnormal situa- 
tion, proper adjustment of curve data, either upward or downward, must be made. For 
that reason, whenever certain adjustment factors may apply they have been explained 
and referenced. Mention of some of the common adjustment factors has been omitted 
from the narratives in order to avoid repetition. These factors include the various 
cost indexes and the labor rate and power cost conversion methods, as well as more 
subtle variables such as rock hardness. Even though many variables have been con- 
sidered in the preparation of the handbook, every mineral deposit has its own unique 
differences that the individual estimator must be able to recognize and include in 
the cost estimation. 

Operating Cost 

The operating costs presented in these sections include the mining and mineral 
processing costs and mine or plant overheads. The operating cost section for each 
unit process includes distinct formulas and curves allowing for the independent cal- 
culation of the operating labor cost, the operating supplies cost, and the equipment 
operation cost. Fixed charges of insurance, taxes, royalties, depreciation, packag- 
ing* product freight, selling expense, and general and research expenses are not in- 



eluded. The costs associated with supervision are not included with the individual 
unit processes, but are included in aggregate form with the general and administra- 
tive expense curves. 

Labor 

The labor costs generated through the use of this handbook, include both direct 
operating labor and maintenance labor. Each operating cost section of the handbook 
provides the relative percentages of direct and maintenance labor that may be ap- 
plied to the aggregate operating labor cost generated by the costing formula. 

The text also presents a tabulated summary of the direct labor component of the op- 
erating labor cost, providing a breakdown of job classification and the average wage 
rates for the direct labor involved in the operation. An example listing of job 
classifications and wage rates used in the estimation of the operating labor costs 
is presented in table 2. 

Table 2. — Operating labor job classifications and hourly wage rates 

Job Wage_l 

Operations: 

Rotary drill operator $16. 78 

Shovel operator 18.11 

Truck driver 15. 89 

Cave miner 18.11 

Production loader 16.33 

Control room operator 17.23 

Mill operator 16. 78 

Mill helper. 13.66 

Sampler 15.44 

Mill laborer 11.68 

Maintenance: 

Mechanic /welder "A" 16.78 

Mechanic /welder "B" 16.33 

Electrician 18.11 

Instrumentation 18.11 

Oiler 14.56 

Machinist. 17.32 

-'-Includes 32% burden and fringe benefits. 

All labor rates (costs) used in the preparation of curves are based on the 
Denver, CO, area as of January 1984, and include an approximate allowance of 32% to 
cover all applicable payroll burdens and fringe benefits. Shift differentials of 
$0.30 per hour for the second shift and $0.45 per hour for the third shift have been 
included in the labor estimates. Area and /or incentive bonus premiums are not in- 
cluded and the estimator's judgment must determine the application of adjustment 
factors for these items. 

Supplies 

The supplies portion of the operating cost sections is comprised of electrical 
power, natural gas, reagents and industrial chemicals, and other consumables. A 
standard sales tax of 4% was added to all nonfuel items. The costs in table 3, re- 
flective of January 1984, were used in preparing the estimates of supply operating 
costs: 



Table 3. --Base case supply costs 

Commodity Unit Cost 

Fuel Oil. gal $ 1.00 

Natural Gas 1,000 ft 3 3.20 

Coal, 84%-subbituminous st 25.00 

Electricity kW*h 0.05 

Equipment Operation 

Equipment operation costs are considered to include fuel, lubrication, repair 
parts, and tires for all process equipment related to the unit processes. The fuel 
costs used in the preparation of the cost estimates on which the equipment operation 
curves are based were those in effect in the Denver, CO area in January 1984. The 
gasoline and diesel fuel costs were both $1.00 per gallon. A standard sales tax of 
4% was added to all nonfuel items. 

To adjust fuel costs to more recent, local rates, the user should first obtain 
the percentage of the total equipment operation cost due to fuel, and then multiply 
that percentage, in decimal form, by the current cost per gallon of gasoline or die- 
sel fuel. 

Adjustment Factors 

Similar to the capital cost sections, many operating cost sections contain ad- 
justment factors to address operating circumstances other than those that were as- 
sumed for the development of the costing section. Again, these factors are general- 
ly multiplied by the product of the costing formula (or the cost taken directly from 
the curve) to obtain a cost representative of these special circumstances. A more 
detailed explanation of the development and use of adjustment factors has been in- 
cluded in the previous discussion of capital costs. 

Infrastructure 

In addition to the unit process modules, a number of auxiliary sections rep- 
resenting the various infrastructure elements associated with mining and mineral 
processing operations have also been provided. These sections include long-distance 
transportation, loading facilities, storage, waste water treatment, access roads, 
townsite and camp operation, among others. The application of these sections is 
virtually the same as for the unit process sections. 

COST UPDATING 

The mining and mineral processing estimating procedures presented in the hand- 
book, using individual cost component breakdowns, provide a methodology by which the 
base costs derived from the system can be adjusted to be applicable in different lo- 
cations and/or be updated through time. Labor productivities can also be adjusted 
to reflect cost differences due to differences in manpower requirements. 

Two methods may be used to adjust the labor cost curves. Method one, the more 
accurate of the two, is to use the prevailing labor rates for the area under con- 
sideration, in the year of desired escalation, and apply the appropriate payroll 
burdens and premiums. By dividing the new rate by the one given in the narratives, 
a labor adjustment multiplier is obtained, which is applied to the labor cost cal- 



culated from the formulas or from the curves. The second method is to use a labor 
rate for the area under consideration, in the base year. By dividing the new rate 
by the one given in the narrative, a labor adjustment multiplier is obtained, which 
is updated from either labor index number 1 or 2 (table 4). By dividing the in- 
dex corresponding to the year of desired escalation by the one in January, 1984, a 
ratio is derived, which when combined with the labor adjustment multiplier is ap- 
plied to the calculated labor cost. This factor can be used for all classes of 
labor throughout the estimate. 

Operating cost differences due to varying productivities can be adjusted through 
the individual unit process labor costs or through the combination of the components 
of underground mining, surface mining, or mineral processing. Contained in the la- 
bor portion of the narrative of each unit operation is a weighted average labor rate 
of all laborers necessary for that particular unit operation. The number of workers 
per day for each unit operation can be calculated by dividing the daily adjusted 
base year labor cost by the product of the average labor rate and 8 h per shift. An 
adjustment can be made on each unit operation if the estimator replaces the number 
of workers per day calculated above with a new estimate and multiplies by the ave- 
rage labor rate times 8 to derive the new adjusted labor cost based on a new produc- 
tivity. If specific information is not available on each unit operation, the user 
can compute the number of workers per day for each unit operation and add them to 
get the total workers for the mine or mineral processing plant being evaluated. A 
productivity ratio is determined by dividing the known number of workers per day by 
the computed value, which when multiplied by the total adjusted labor cost gives the 
new labor cost. 

Often, productivities are expressed as metric tons per worker-shift or metric 
tons per worker-hour. If the previous calculation is carried further by introducing 
the capacities of the mines or processing plants, productivity ratios can be derived 
to adjust the labor costs. 

Most of the supplies and equipment operation costs are composed of more than one 
component. In these cases, it is necessary to calculate the component cost for each 
index classification. By dividing the index corresponding to the year of desired 
escalation by the one for January 1984, for each component, a ratio is obtained that 
is multiplied by the calculated cost component. Combining these escalated compo- 
nents produces a final updated cost. 

Electricity, natural gas, propane, and water costs do not have corresponding 
index classifications for updating. The method used to update these categories by 
location is to use the prevailing rates for the area under consideration, either in 
the base year or the year of desired escalation, and to divide the new rate by the 
one given in the narratives resulting in the adjustment factor. This factor is next 
multiplied by the corresponding cost from the curve to obtain the site-specific 
cost . 

Cost Indexes 

The mining wage rates index includes both mine and plant labor. This index in- 
cludes skilled, unskilled, local, and expatriate labor along with burden and fringe 
benefits (employer's contribution to union funds for health and welfare, vacations, 
holidays, sick leave and retirement, Social Security, Federal and State Unemployment 
Insurance, and Workmen's Compensation). 



10 

The construction wage rate index includes all labor (see mining wage index for 
inclusions) employed in the construction of mines and mineral processing facilities. 

The equipment and repair parts index relates to equipment and repair parts rele- 
vant to mining and mineral processing operations and related infrastructure, e.g., 
front-end loaders, shovels, load-haul-dumps (LHD's), trucks, jumbo drills, as well 
as crushers, grinding mills, flotation cells, thickeners, filters, etc. 

The drill bits and related steel index includes steel for mining and mineral 
processing such as drill bits, pipe, fan liners, track, shovel and loader teeth and 
liners, etc. as well as replacement parts such as steel balls, rods, shell and head 
liners, scoop lips, etc. 

The timber and lumber index covers the timber and lumber that is most readily 
available for applications such as cribbing, lagging, and supports in underground 
mining. 

The fuel index covers refined fuel products weighted toward diesel. However, 
the fuel index is also considered applicable to other petroleum products. 

The explosives index includes all types of blasting supplies, e.g., propellent 
powders, blasting caps, etc. 

The tires and rubber index includes all types of tires applicable to mining op- 
erations, e.g., for LHD's, trucks, as well as other parts made of rubber such as 
conveyor or other belts for machinery. 

The construction materials index is applicable to materials such as sand, gra- 
vel, cement, limestone, reinforcing rods, steel fasteners, etc., for use in con- 
struction of mine and mineral processing plants and related infrastructure. 

The industrial materials index includes mining and mineral processing chemicals 
used in daily operations, e.g., wetting agents, mining reagents, dust depressants, 
flocculants, flotation reagents, etc. 

The transportation index measures transport cost based upon an assessment of the 
country's normal freight transport network relevant to the mineral industry and 
could include, in addition to rail and truck, means such as barge and pipeline. 

Table 4.— U.S. cost indexes, 1980-85 



1980 



1981 



1982 



1983 



1984 



1985 



Mining wage 

Construction wage 

Equipment repair parts. 
Bits and related steel. 

Timber and lumber 

Fuel 

Explosives 

Tires and rubber 

Construction materials. 
Industrial materials... 
Transportation 



9.19 

,767.0 
288.9 
305.0 
325.6 
674.3 
251.1 
249.7 
287.7 
274.2 
311.3 



10.06 
3,025.0 
320.8 
333.8 
325.1 
805.9 
288.9 
270.2 
310.3 
304.1 
355.3 



10.82) 
3,345.0 
343.9 
339.0 
310.8 
761.2 
298.9 
271.6 
330. 1 
312.3 
387.3 



11.27 
587.0 
351.9 
343.4 
352.6 
684.3 
302.1 
260.0 
352.9 
315.7 
395.4 



11.56 
3,679.0 
354.3 
354.1 
353.2 
669.7 
301.3 
258.0 
355.5 
319.2 
409.7 



3, 



11.90 
747.0 
362.3 
355.6 
340.0 
633.8 
312.8 
247.0 
358.2 
323.9 
414.4 



11 

ESTIMATING PROCEDURE 

The CES handbook is a tool to be used for mine capital and operating cost esti- 
mation and comparison. As with any tool, the skill of the user will ultimately de- 
termine the quality of the product. The evaluator must realize that the extent of 
thought and understanding in the input will directly affect the accuracy of the fi- 
nal result. When estimating the cost of an operating mine, as much information as 
possible should be compiled prior to cost estimation. When costing a proposed op- 
eration, it is imperative to develop a detailed mine plan before using this hand- 
book. The method providing the maximum economic benefit given the restrictions of 
geometry, geology, and environment must be selected. Great care must be taken in 
selecting a mining method that is both applicable and practical with respect to the 
geometry, geology, and accessibility of the ore body, while taking into account any 
other parameters that might affect design. To obtain an accurate estimate, the im- 
portance of the compatibility of the stoping, mining, hauling, and general service 
systems with the characteristics of the deposit, as well as with each other, cannot 
be overemphasized. 

The initial step in using this handbook is the selection of sections and indi- 
vidual formulas and curves within the sections to be used in the evaluation. It is 
presumed the estimator will have adequate knowledge of mining, mineral processing, 
and estimating procedures before attempting to prepare an estimate using the methods 
presented herein. After the data requirements have been prepared, the cost sections 
that apply should be studied until their contents are fully understood. 

In order to effectively apply the costing system, the estimator should develop a 
reasonably detailed flowsheet and material balance incorporating all operations to 
be costed. A fairly comprehensive process flow diagram and material balance will 
enable the estimator to apply the system rapidly, as most of the formulas or cost 
curves generate costs directly as a function of capacity (usually metric tons per 
day). This preparatory work should be sufficiently detailed to establish the grades 
and recoveries for all major product streams as well as to delineate the mass flow 
rates (both solid and liquid) for all major product streams. Finally, any special 
information (required for adjustment factors) should be noted as it will enhance the 
accuracy of the final estimate. 

Each handbook section represents a unit process in mining or mineral processing. 
In order to generate the costs for a desired actual or proposed operation, the esti- 
mator must first obtain the following minimum information: 

The amount of ore and waste mined or concentrate produced on a daily basis. 

The mining and processing method(s) employed and any peculiarities associated 
with the deposit. 

The applicable labor rates, number of shifts operated per day, and water and 
electrical rates. 

Once this information has been gathered, all sections required for the cost est- 
imate should be studied to determine other information required for adjustment fac- 
tors. In order to obtain the best results, the estimator should proceed through the 
sections in the sequence they are presented in the handbook. A more detailed dis- 
cussion of the requirements for producing an acceptable cost estimate using this 
handbook, is presented in the following section. 



12 

GUIDELINES FOR SURFACE MINING 

Coverage for surface mining includes dredging, quarrying, strip mining, and open 
pit mining. When using this system for estimating cost data for an undeveloped de- 
posit or for checking or verifying mining costs from a developed deposit, a minimum 
amount of background information must be obtained. This includes environmental, ex- 
ploration, infrastructure, ore body configuration, rock competency, prevailing labor 
costs (including payroll burden), daily or annual tonnage, surface mining and haul- 
age methods, and any extreme circumstances that would have an impact on the costs, 
such as severe weather or remoteness of the location. 

A detailed explanation is included with each cost section. These explanations 
list the cost items used to develop the cost section, and specify exactly what is 
covered. Since many of the mining development, method, and haulage sections appear 
to overlap, each explanation must be read carefully and fully understood. Only by 
understanding the scope of each section can the estimator be assured that every re- 
quired item will be accounted for once, and only once, in the final cost. 

The following pages present some guidelines for designing surface mining sys- 
tems. As with any guidelines, many exceptions exist, and many situations are not 
considered. In the final account, the individual evaluator's knowledge of the de- 
posit and of the mining system will determine the accuracy of the estimate. Evalua- 
tors often assume that surface mining is preferable to underground methods. This, 
of course, is not always the case. For the purpose of selecting the best method and 
proper curves using this manual, both surface and underground techniques must be 
considered. The method providing the maximum economic benefit given the restric- 
tions of geometry, geology, and environment must be selected. 

Of the items that affect the economics of surface mining, the most important is 
stripping ratio (the amount of waste that must be removed to extract 1 mt of ore). 
In surface mining, overburden and waste must be removed to access the ore body. As 
the depth of mining increases, the rate of waste that must be removed to extract the 
same amount of ore also increases. A point is eventually reached where the cost of 
removing the ore exceeds its value. Consequently, steeply dipping narrow vein de- 
posits must be of very high grade to justify surface mining. The method is best 
suited for large volume deposits occurring near the surface. 

Generally, surface mining is more efficient than underground. First, more 
energy is required to extract and remove a ton of ore from an underground working 
than from a surface mine. Increases in drilling and blasting requirements per ton 
of ore, limits in the size of ore conveyance equipment, restrictions in haulage 
routes and speeds, and additional handling and rehandling of the ore all raise the 
total energy needs of underground mining. Increases in energy requirements escalate 
the production costs per ton, which in turn dictate higher cutoff grades. Second, 
higher ore losses are incurred in underground mining as compared to surface methods. 
While open pit recovery can approach 95%, underground methods such as room and pil- 
lar often leave as much as 40% of the ore behind, which translates directly into 
lost revenue. 

In the final analysis, the decision to mine an ore body using surface methods as 
opposed to underground usually pivots on economics. If development, extraction, and 
removal costs per ton ore ore are greater for one method than the other, the least 
expensive technique will undoubtedly be chosen. No general optimum deposit depth 
exists for surface mining. The practical depth for a specific deposit is deter- 



13 

mined by the stripping ratio, ore value, working slope angle, deposit volume, ex- 
traction method, mine life, and reclamation requirements. In many instances, ore is 
extracted by surface methods down to an economically determined cutoff point, then 
underground techniques are initiated. The above guidelines are general, and since 
all ore bodies are shaped differently, the evaluator must decide which model most 
closely resembles this situation, and which method, or combination of methods, is 
most appropriate. 

Deposit geometry is critical in the estimate of costs for both surface and 
underground mining. For surface methods, the total amount of waste removed per ton 
of ore is directly related to the shape of the deposit, and its relation to the sur- 
face topography. Surface mining techniques can be used in nearly all geologic con- 
ditions. However, factors such as weathering, fracturing, rock strength, and ground 
water all influence the stability of the ore and waste. Working pit slope is a 
function of this stability, and directly affects the production cost per ton and the 
economic depth of the pit. 

Before deciding on a mining technique, all remaining available information 
should be examined. Environmental, geographical, personnel, and financial restric- 
tions may each influence mine design. Since most sections have factors for unusual 
situations, this information will also increase the exactness of the cost estimation 
process. Although the benefits are often economically intangible, a prudent engi- 
neer must certainly study the advantages of reducing the environmental impact. 

Geographical characteristics and mine location may also alter the method of ex- 
traction and haulage. In rugged areas, it may prove difficult and expensive to 
bring in large equipment. Mine design in extremely remote areas may be dictated by 
the availability of power. Mine operators often choose to forego transmission lines 
and haul in fuel for diesel generators, if the latter is less expensive. High-draw 
electrical equipment, such as conveyors, may be eliminated in favor of trucks if 
electric power is scarce or costly. Conversely, an abundance of electrical power 
will compel operators to select an electrically intensive system. 

The labor force deserves careful attention during the design process. If little 
labor is available locally, a highly mechanized mine may prove more economically at- 
tractive than importing personnel. Unskilled local labor, if plentiful, indicates 
the necessity of a labor-intensive method using simpler equipment. Many labor 
skills are easily transferable, and should be used to advantage. In logging or 
farming areas, the use of heavy equipment is common, and the labor force may easily 
adapt to mine equipment operation. 

MINING SYSTEM DESIGN 

Once mining and haulage systems have been selected, they are combined with the 
proper development techniques and auxiliary systems to complete the mine design. 
Provisions must be made not only for the access, extraction, and removal of the ore, 
but for the physical needs of the miners and the operational needs of the equipment 
as well. This entails the inclusion of communication, electrical, and water sys- 
tems, along with any other items required for safe extraction. 

As stated earlier, the individual unit process narratives detail what the sec- 
tion covers and must be thoroughly understood. Before designing the mine the user 
must construct access roads and utilities. Development consists of clearing, pre- 
production stripping, and enough haul road and bench development, so that when pro- 



14 

duction begins, it will continue at a uniform rate. The overall stripping ratio is 
the ratio of the total amount of waste to be mined to the total amount of ore. 
After production begins, the stripping ratio becomes the ratio of waste to ore dur- 
ing production, without including the amount of waste mined during development. 
Stripping ratio is often misleading and the user must understand what context it is 
used in before completing an estimate. 

Several other items must be individually considered and included in the cost 
estimation if required. These include 

1. Exploration 

2. Office and Laboratories 

3. Shops and warehouses 

4. Engineering and construction fees 

5. Administration 

6. Working capital 

Surface mining design and development is contingent on the value and the physi- 
cal parameters of an ore body and dependent on the technologies available to mine 
the ore body. Table 5 shows what mining types are available in this handbook: 

Table 5. — Surface mining methods 

Method Production range 

Wheel loaders or diesel shovels and trucks. 1,000 - 10,000 (mtpd) 

Shovels and trucks 8,000 - 400,000 (mtpd) 

Scrapers 2,000 - 250,000 (mtpd) 

Crawler draglines 2,000 - 15,000 (mtpd) 

Walking draglines 15,000 - 150,000 (mtpd) 

Dredging 500 - 20,000 (bank m 3 /d) 

Bucket wheel excavators 2,200 - 125,000 (mtpd) 

Hydraulic mining 9,500 - 58,000 (mtpd 

Most of the surface development and mining sections have been developed on a ca- 
pacity basis. In this case, when users generate a mine estimate based on shift 
designations other than what the development of the sections was based on, no ad- 
justment is necessary. With the surface mining equipment sections, the tonnage 
mined by a designated amount of equipment is specified for a certain number of 
shifts. If the user wants to use another shift designation, an adjustment must be 
made. To adjust from a shift designation other than the one a curve was developed 
on, it is necessary to multiply the shift ratio (base/actual) times the mine capa- 
city, and then use the adjusted value for the actual cost determination. 

GUIDELINES FOR UNDERGROUND MINING 

The underground mining includes individual development sections for drifting, 
raising, shaft sinking, stope development, various mining methods, underground mine 
haulage, general plant, and underground mine administrative cost. When using this 
system for estimating cost data for an undeveloped deposit or for checking or veri- 
fying mining costs from a developed deposit, a minimum amount of background informa- 
tion must be obtained. This includes environmental, exploration, infrastructure, 
ore body depth, rock type and hardness, support or ground conditions, prevailing la- 
bor costs (including payroll burden), daily or annual tonnage, underground mining 
and haulage methods, and any extreme circumstances that would have an impact on the 



15 

costs, such as severe weather or remoteness of the location. 

A detailed explanation is included with each cost section. These explanations 
list the cost items used to develop the cost section and specify exactly what is 
covered. Since many of the mining development, method, and haulage sections appear 
to overlap, each explanation must be read carefully and fully understood. Only by 
understanding the scope of each section can the estimator be assured that every re- 
quired item will be accounted for once, and only once, in the final cost. 

The following pages present some guidelines for designing mining systems. As 
with any guidelines, many exceptions exist, and many situations are not considered. 
In the final account, the individual evaluator's knowledge of the deposit, and of 
the mining system he has designed, will determine the accuracy of the estimate. 

Geometry 

Initially, the geometry of the deposit must be understood to develop a mine 
plan. An actual or estimated length, width, thickness, strike, dip, continuity, 
shape, and relation to surface topography are all required. Once these are estab- 
lished, the list given in table 6. will provide a starting point in determining a 
mining method. 

Table 6. — Guidelines for selection of mining method 

Deposit Method 

All deposits , near surface-^ Surface mining . 

Bedded deposits, at depth, dip less than 30°.... Room and Pillar, continuous mining, 

block caving. 
Narrow vein deposits, at depth^ Sublevel-longhole, shrinkage stoping, 

vertical crater retreat, cut and 

fill, resuing. 

Small, irregular deposits, at depth Square set, cut and fill, resuing. 

Wide vein deposits, at depth J Sublevel-longhole, vertical crater 

retreat, cut and fill. 
Massive deposits, at dep th Block caving. 

^-For estimating purposes, near surface can be taken to mean a depth less than 
150 m; however, the depth of economically feasible mining will vary greatly. 

^Limits for stope width are stated in each individual stope preparation curve 
explanation. 

^It must be remembered that for wide vein deposits, stopes can run perpendicular 
to the strike, although some ore may be lost to pillars. 

Geology 

Next, the geology of the ore and wall rock must be examined. Ore and wall rock 
characteristics directly affect method selection and subsequent mining costs. The 
extra time and supplies required to keep stopes and haulage ways open will obviously 
increase the total cost per metric ton of ore significantly. 

Economics 

The economics of the various methods must of course be considered. Once the 
geometry and geology of the deposit have been established, the choices of mining 






16 

method are narrowed significantly. At this point, if no other factors prohibit the 
choice, the least expensive remaining alternative is selected. Once it becomes nec- 
essary to use underground methods, the evaluator must remember that, for comparison 
purposes, stope preparation costs add to the relative cost per ton of ore extracted. 

Other Parameters 

Before deciding on a mining technique, all remaining available information 
should be examined. Environmental, geographical, personnel, and financial restric- 
tions may each influence mine design. Since most sections have factors for unusual 
situations, this information will also increase the exactness of the cost estimation 
process. 

Although the benefits are often economically intangible, a prudent engineer 
must certainly study the advantages of reducing the environmental impact. Serious 
environmental problems associated with mining include aesthetics, noise, dust, 
acidic mine water, and subsidence. Underground mining will substantially reduce 
the first three of these problems. For this reason, underground methods must be 
considered in environmentally sensitive areas, even if surface mining appears less 
expensive. Where subsidence is a problem, backfilling or permanent support will be 
required even though the deposit may lend itself to less expensive techniques. 

Geographical characteristics and mine location may also alter the method of ex- 
traction and haulage. In rugged areas, it may prove difficult and expensive to 
bring in large equipment. In this case, the most economically effective alterna- 
tives include labor-intensive methods such as cut & fill or shrinkage stoping. Mine 
design in extremely remote areas may be dictated by the availability of power. Mine 
operators often choose to forego transmission lines and haul in fuel for diesel gen- 
erators, if the latter is less expensive. High-draw electrical equipment, such as 
conveyors and hoists, may be eliminated in favor of trucks if electric power is 
scarce or costly. Conversely, an abundance of electrical power will compel opera- 
tors to select an electrically intensive system. 

The labor force deserves careful attention during the design process. If 
little labor is available locally, a highly mechanized mine may prove more econom- 
ically attractive than importing personnel. Unskilled local labor, if plentiful, 
indicates the necessity of a labor-intensive method using simpler equipment, such 
as jacklegs and slushers. Many labor skills are easily transferable, and should be 
used to advantage. In logging or farming areas, the use of heavy equipment is com- 
mon, and the labor force may easily adapt to mine equipment operation. 

Many mining methods described in the manual require high initial capital in- 
vestments, even though production costs may be quite low. Block caving, for exam- 
ple, requires a large amount of time and money for preproduction development, and 
receipt of initial revenues are subject to an extensive lag time. Similar situa- 
tions occur with sublevel and shrinkage stoping, although not to the same extent. 
Some methods, such as hard rock room & pillar, have relatively low initial costs, 
and since ore is mined immediately, revenues are realized early in the life of the 
operation. Capital availability may also affect the selection of haulage methods. 
Not only must the respective advantages of rail, conveyor, truck, load -haul -dump 
(LHD), or hoist haulage be compared on a deposit accessibility basis, they must 
also be compared on a production cost basis, and, just as important if capital is 
short, an initial cost basis. 



17 

Mining System Design 

Once mining and haulage systems have been selected, they are combined with the 
proper development techniques and auxiliary systems to complete the mine design. 
Provisions must be made not only for the access, extraction, removal, and storage of 
the ore, but for the physical needs of the miners and the operational needs of the 
equipment as well. This entails the inclusion of communication, ventilation, elec- 
trical, and water systems, along with any other items required for safe extraction. 

As stated earlier, the individual unit process narratives detail what the sec- 
tion covers and must be thoroughly understood. For instance, since each mine has 
unique ventilation requirements, the ventilation section contains no allowance for 
separate ventilation shafts. If one is needed, either the raise boring, raise, or 
shaft sinking sections must be utilized to account for its construction cost. 

Consider the problem of first developing, then mining a vein deposit using a 
vertical crater retreat method shown in figure 1. First, all mining levels of the 
ore body have to be accessed. To accomplish this, a combination of shafts and 
drifts, ramps and drifts, or drifts and raises are designed to connect the surface 
with the ore body. During preproduction development, enough levels and stopes must 
be opened to allow for uninterrupted production once mining begins. Eventually, 
drifts on each level will be of sufficient length to access all planned stopes. 
Crosscuts from these drifts to the stopes, and all development within the stopes, 
are covered in the stope preparation sections. Consequently, the only design re- 
quirements for the evaluator are the number of stopes needed for initial production, 
their locations, and their dimensions. The vertical dimension of these stopes will 
determine the level interval. 

Next, a transportation system must be developed capable of delivering ore from 
the stopes to the mineral processing facility. In this case, it is assumed that all 
ore will be moved out of the stope to an ore pass using LHD's. The cost of these 
units will be accounted for using the LHD portion of the mine equipment section. 
Ore will be delivered to the bottom level through the ore pass, where it will be 
hoisted to the surface by way of a combination haulage-access shaft. The ore pass 
will be raised, or raised bored, from a point near the shaft on the lowest level to 
the uppermost level. Either short drifts or feeder raises connect this ore pass to 
a point central to the stopes on each level. Regardless of the choice of ore pass 
feed method, costs must be calculated for both the ore pass and the connections. 
The design requires the excavation of an ore pocket at the bottom of the ore pass. 
It should be capable of handling surges in production or breakdowns of the hoist. 
Hoisting facilities will also be required to lift the ore out of the mine. From the 
top of the haulage shaft, ore will be taken to the mill by conveyor. The cost of 
this conveyor should be attributed to the mine. 

Several systems are needed to provide services for workers and equipment. 
First, fresh air is a necessity for the workers. In this case, air will pass down a 
separate ventilation shaft, through the stopes and access drifts, and out the haul- 
age shaft. Although the ventilation section covers costs of fans and all auxiliary 
equipment, the expense of the separate ventilation shaft should be calculated using 
the raise, raise boring, or shaft sinking sections, depending on construction meth- 
od. A drainage and disposal system will be needed in any mine using or producing 
water, and a communication system is required in all mines for worker safety. 
Equipment needs are primarily met by an underground shop or shops for maintenance. 
The number and size of shops depends upon the type and amount of equipment, and the 



18 

underground mobility between levels. Equipment demands also Include water, compres- 
sed air, fuel, and electricity. Although water and electricity will be needed in 
all cases, fueling and compressed air systems may not be necessary. If the respec- 
tive equipment is not incorporated in the mining technique, these systems should be 
eliminated. in this example, compressed air is needed for down-the-hole drills, and 
fuel is required for LHD's. 

At this point, all capital costs attributed directly to underground mine deve- 
lopment have been considered. To estimate operating costs associated with extract- 
ing the ore, it is imperative that selected mining and haulage techniques be under- 
stood, and that corresponding operating cost sections be used correctly. Care 
should be taken to account for all development required during production. Specifi- 
cally, enough stope preparation, drifting, and raising must be performed to maintain 
production as mining progresses. As for actual extraction, the vertical crater re- 
treat mining section covers drilling, blasting, and handling the ore in the stope. 
In addition, this section accounts for a 200-m haul of the ore using LHD's. If 
carefully designed, this 200-m haul will cover the distance from the stope to the 
ore pass feeder. The mining section also covers any miscellaneous items and auxil- 
iary ventilation needed in the stope. After the ore is fed to the ore pass with the 
LHD's, it falls to the ore pocket, where it is eventually loaded onto a skip. The 
hoisting section is used to account for the cost of lifting the ore up the shaft. 
At the top of the shaft, the ore spills into a bin which, in turn, feeds directly 
onto the mine-to-mill conveyor. Operating costs for the conveyor are also included 
in the total mine operating cost. 

With the exception of fueling systems, which are usually gravity fed, all 
other underground systems will have daily operating costs. Sections for ventila- 
tion, compressed air, drainage and disposal, water supply, electrical, and communi- 
cation systems will all be utilized, along with general items. If any core drilling 
is required to maintain reserves, a cost for this is also essential. 

The previous example addresses only the design and cost problems directly asso- 
ciated with extraction. Several other items must be individually considered and in- 
cluded in the cost estimation if required. These include 

1. Clearing 

2. Access roads 

3. Exploration 

4. Office and laboratories 

5. Shops and warehouses 

6. Surface buildings 

7. Engineering and construction fees 

8. Administration 

9. Working capital 



19 



FIGURE 1. 



TO SURFACE r<J 



TO SURFACE 



VENTILATION RAISE 



RAMP SYSTEM 




GENERALIZED VERTICAL CRATER RETREAT MINE 



20 

Other Mining Methods 

The methods included in this handbook represent many traditional and most con- 
ventional approaches to mining. A number of variations of these methods have been 
tried and are currently in use. If confronted with a method that is similar to one 
included in this handbook, the costs will apply if the following criteria are met: 

1. Equipment requirements and usages are similar. 

2. The labor requirements are comparable, and the tasks accomplished by each 
worker are analogous. 

3. Similar technical parameters exist, i.e., drill-hole size, hole spacing, 
explosive type, ore draw, and initial handling are comparable. 

Underground mining design and development is contingent on the value and the phys- 
ical parameters of an ore body and dependent on the technologies available to mine 
the orebody. Table 7 shows what mining methods are available in this handbook and 
ranges of productivities that were used in the development of these sections. 

Table 7. - Underground mining methods 



Method 



Curve range , mtpd 



Low 



High 



Productivity 
mt/worker shift 



Block caving: 

Gravity 

Load-haul-dump , 

Slusher 

Continuous mining , 

Cut and fill 

Longhole , 

Resuing 

Room-and-pillar : 

Hard rock 

Soft rock , 

Shrinkage , 

Square set , 

Vertical crater retreat 



2,500 



40,000 



2,000 


30,000 


100 


8,000 


350 


10,000 


20 


450 


1,500 


8,000 


800 


9,500 


100 


4,000 


20 


200 


650 


4,000 



115 


-302 


67 


-160 


70 


-181 




100 


6 


- 12 


61 


- 95 


1. 


7 -4.2 


82 


- 99 


102 


-136 


3 


- 10 


4 


- 8 


107 


-200 



Underground mining development using this handbook requires the estimator 
either to know or to be able to determine the access to the ore body, either adit 
or shaft entry or a combination thereof, and any alternative access, service, or 
ventilation shafts or raises necessary. Depending on the haulage types and require- 
ments, the size and length of the haulage drifting necessary, can be developed. 
Based on the underground facilities that are necessary the underground excavation 
sections should be used to develop the underground openings that are needed. Stope 
development can be accomplished using drifting, raising, and excavation sections 
for the appropriate type of excavation necessary, or stope preparation sections are 
available that are based on the amount of development necessary for the mining type 
being considered at a known capacity. 

Criteria determining the best mining method selection is the ore body configur- 
ation and the ore mineral dissemination within the ore body. Massive type ore 
bodies are mined by room-and-pillar or caving methods, whereas vein type or further 
disseminated or pod type ore bodies are mined by one of the selective stoping meth- 
ods; cut and fill, shrinkage, square set, or resuing. 



21 

Most of the underground development and mining sections have been developed on a 
per meter advance rate or a per ton capacity basis. In this case, when users gene- 
rate a mine estimate based on shift designations other than what the development of 
the sections was based on, no adjustment is necessary. With the underground mining 
equipment sections, the tonnage mined by a designated amount of equipment is speci- 
fied for a certain number of shifts. If the user wants to use another shift desig- 
nation, an adjustment must be made. To adjust from a shift designation other than 
the one a curve was developed on, it is necessary to multiply the shift ratio (base/ 
actual) times the mine capacity, and then use the adjusted value for the actual cost 
determination. 

The underground development and mining sections contain a rock hardness factor 
but blastability of rock is related to factors not readily available to the evalua- 
tor, such as jointing, fracture patterns, and burden. Consequently, it is not con- 
sidered in the adjustment factors. If contract or incentive pay is being consider- 
ed, adjustments must be made to the labor cost to account for this additional ex- 
pense . 

EXAMPLE APPLICATION OF CES: VERTICAL CRATER RETREAT (VCR) MINING 

For purposes of illustration, the example that follows briefly outlines the pro- 
cedure for calculating the operating costs for a single unit process of underground 
mining. A similar sequence of calculations is required for any of the unit process 
sections contained in this handbook. The unit process section for calculation of 
the operating costs for vertical crater retreat (VCR) mining (refer to section 
5.2.1.9.10.) is the subject of this example. A hypothetical mining rate of 2,000 
mtpd of ore has been assumed. 

Operating Labor 

The first objective of CES involves the calculation of the total labor (direct 
operating labor plus maintenance, including fringes and burden) for the unit process 
under consideration. In the case of VCR mining, the formula for calculating the op- 
erating labor cost (per day) is 

Y L = 23.075(X) - 595 
By substitution: Y L = 23.075( 2 , 000)°* 595 

Y L = $2,124/day. 

Subsequently, the relative amounts for direct operating labor and maintenance 
labor can be calculated using the percentages given in the text of 87% mine labor 
and 13% maintenance labor. 

Mine labor (0. 87) ( 2, 124) = $l,848/day 

Maintenance labor... (0. 13) ( 2 , 124) = 276/day 
Total labor 2,124/day 

Operating Supplies 

The cost per day of operating supplies for VCR mining is calculated by substi- 
tuting the capacity, 2,000 mtpd, into the equation 



22 

Y s - 2.152(X) - 947 

Y s = 2.152(2,000) - 947 

Y s = $2,877/day. 

The costs of the components of the operating supplies cost can then be calcula- 
ted using the percentages given in the text. 

Blasting supplies (0. 69) (2, 877) = $l,985/day 

Drill bits and steel (0. 13)( 2, 877) = 374/day 

Miscellaneous items (0. 09) (2, 877) = 259/day 

Material waste ( 0.09)(2,877) = 259/day 

Total operating supply cost 2,877/day 

Equipment Operation 

The cost per day of equipment operation for VCR mining is calculated by substi- 
tuting the capacity, 2,000 mtpd, into the equation 

Y E = 1.502(X)°.792 

Y E = 1. 502(2, 000) - 792 

Y E = $618/day 

The costs of the components of the equipment operation cost can then be calcula- 
ted using the percentages given in the text. 

Maintenance and overhaul parts (0.44) (618) = $272/day 

Fuel (0.33K618) = 204/day 

Tires (0.16)(618) = 99/day 

Lubrication (0.07)(618)= 43/day 

Total Equipment Operating Cost 618/day 

Adjustment Factors 

Rock Hardness Factor 

Provision is made for compressive strength of rock varying from the 31,700 psi 
used to develop the base case costs. To illustrate the application of the rock 
hardness adjustment factor it is assumed that the compressive strength of the rock 
considered in the previous example is 70,000 psi. The compressive strength is sub- 
stituted for the independent variable, C, in pounds per square inch, in the factor 
equations for labor, supply, and equipment operation. 

Labor factor (F L ) = ( 0. 388) (C)°- ° 93 

(F L ) = (0.388)(70,000) - 093 = 1.10 

Supply factor (F s ) = ( 0. 579) (C ) * 054 

(F s ) = (0.579)(70,000) - 054 = 1.06 

Equipment operation factor (F E ) = ( 0. 716) (C) °* ° 33 

(F E ) = (0.716)(70,000) - 033 = 1.03 

Backfilled Stope Factor 

It is further assumed that backfilling of stopes is applicable to this hypothe- 



23 

tical operation. To adjust the costs for this variation, the backfilled stope 
factor is employed. In this case, the independent variable, X, represents metric 
tons per day of ore . 

Labor factor (F L ) = (0.863)(X) (2,000) - 030 = 1.08 

Supply factor (F s ) = (1.635) (X) (2, 000) ' 027 = 2.01 

Total Adjusted Costs 

Finally, the adjustment factors must be applied to the appropriate costs as de- 
rived from the base case cost formulas. 

Total labor cost ($2,124/day)(1.10)(1.08) = $2,523/day 

Total supply cost ($2,877/day)(1.06) (2.01) = $6,130/day 

Total equipment operating cost ($618/day )(1.03) = $637 /day 

The application of other adjustment factors, and all other adjustment factors 
presented in the various mining sections, is essentially the same as shown in the 
examples above. 

Summation of Costs 

Finally, the estimator should sum the capital and operating costs. Significant 
figures should be taken into account at this time if the estimator has not already 
done so. The cost equations given in the text have not been reduced to significant 
figures, as they are the product of a statistical analysis. It is recommended that 
the estimator express no more than three significant figures (depending on the pre- 
cision of the input data). 



24 



ACKNOWLEDGMENTS 



The development of the updated Cost Estimation System Handbook was the result 
of an extraordinary team effort under the constraints of an extremely limited 
schedule and restricted personnel availability. 

This project would not have been possible without the efforts and cooperation 
of the assigned staffs of the Minerals Availability Field Office, the Intermountain 
Field Operations Center and the Western Field Operation Center. These groups are 
hereby acknowledged. 






MINERALS AVAILABILITY FIELD OFFICE 



INTERMOUNTAIN FIELD OPERATIONS CENTER 



R. Grey Christiansen 
Jerome P. Downey 
Sandra R. Kraemer 



WESTERN FIELD OPERATIONS CENTER 

Dale W. Avery 
Thomas W. Camm 
David K. Denton, Jr. 
George D. Gale 
Burton B. Gosling 
C. Thomas Hillman 
Nathan T. Lowe 
Scott A. Stebbins 



Francisco Amaro 
Michael R. Daley 
Roger L. Dolzani 
Ted A. Drescher 
Larry R. Fairbank 
Tamera J. Frandsen 
Alan G. Hite 
Lee M. Osmanson 
Barbara J. Roberson 
Joseph R. Soper, Jr. 
Daniel S. Witkowsky 



25 

Acknowledgments for Assistance on CES Update Project by 
Companies, Organizations, and Individuals Outside MAS 



Contributor 

A&K Railroad Materials, Inc. 

Allied Chemical Corporation 

Allis -Chalmers Corporation 

Allis -Chalmers Solids Process Equip. Co 

AMAX, Inc. 

American Borate Co. 

American Cyanamid Co. 

ASARCO Inc. 

Ashland Chemical Co. 

AT&T 

BGA International, Inc. 

(Galigher-ASH Pump Co.) 
Bancroft Fire Dept. 
Bays Equipment, Inc. 
Beak Consultants, Inc. 
Bechtel Corporation 
Best Pipe & Steel, Inc. 
Betz Laboratories, Inc. 
Bird Machine Co. 
Boyles Bros. Drilling Co. 
Calgon 

CAN MAC Engr. Sales, Inc. 
Carlin Gold Mining Co . 
Celanese Water Soluble Polymers 
Charles Lowe Co. 
Clayton Silver Mines, Inc. 
Climax Molybdenum Co . 
Colo. Div. of Employment & 

Training 
Cominco American, Inc. 
Copper Range Co. 
Corpco Magnetics, FL 
Co tier Corp. 
Cyprus Minerals Co. 
Denver Equipment 
Denver Water Board 
Dings Magnetic Group 
Dorr-Oliver, Inc. 
Dow Chemical 
Dredge Tech. Corp. 
Duncan, Donald M. , Consultant 
Duval Corp. 

Eagle-Picher Industries, Inc. 
E.I. DuPont de Nemours & Co., Inc. 
EIMCO Envirotech Corporation 



26 



Environmental Research & Technology, Inc. 

Falconbridge Nickel Mines Ltd. 

Fawcett Drilling 

Foote Minerals 

Freeport Gold Co. 

Frye Equipment 

General Electric Supply Co. 

Getty Mining Co. 

Goodman Equipment Corporation 

Goodyear Conveyors 

Goodyear Tire & Rubber Co. 

Harnischfeger Corp. 

Hecla Mining Co. 

Hercules, Inc. 

Homestake Mining Co. 

Humphreys Mineral Industries, Inc. 

Inco, Ltd. 

Industrial Design Corporation 

Inter -Tel, Inc. 

Ingersoll-Rand Equip. Corp. 

J.N. Brown & Associates 

James Montgomery Consulting Engineers, Inc, 

Jeffrey Manufacturing Co. 

Johnson Gas Appliance Co. 

Joy Manufacturing Co. 

Kappes and Associates 

Kerr-McGee Nuclear Corporation 

Krebs -Engineers 

Lacana Mining Co. 

Larox, Inc. 

Linatex 

Livingston-Graham, Inc. 

Magma Copper Corporation 

Molycorp Inc. 

Midwest Rubber Co. 

Mine & Mill Engineering, Inc. 

Mine & Smelter Corp. 

Mountain Bell 

Mountain States Mineral Enterprises 

Murphy Brothers Drilling Co. 

Nash Engineering Co. 

National Filter Media Corp. 

Newmont Exploration, Ltd. 

Noranda Inc. 

Oil, Chemical & Atomic Workers 

International Union 
Oregon Aeronautics 
Page Engineering, Co. 
Peabody Coal Co. 

Pennsylvania Crusher Corporation 
Phillips Driscopipe, Inc. 
Piet Lien & Sons 
Pincock, Allen & Holt, Inc. 



27 



Pinson Mining Co. 

Plouf, T.M. 

Potash Company of America 

Precision National Elec. Co. 

Public Service Co. of Colorado 

Ralph M. Parsons Co. 

Reeves Plastic Pipe Co., Inc. 

Reserve Mining Co. 

Rexnord 

Robbins Co. 

St . Joe Lead Co . 

Salisbury & Dietz, Inc. 

Stainless & Carbon Steel Wool Co. 

Standard Metals Corporation 

Stearns Magnetics, Inc. 

Stewart & Stevenson Services, Inc. 

Sundt Industrial Contractors, Inc. 

Sunshine Mining Co. 

TAG, Inc. 

Taylor, P.R., University of Idaho 

Techna-Dyne, Inc. 

U.S. Bureau of Mines 

Div. of Nonferrous Metals 

Reno Research Center 

Salt Lake City Research Center 

Twin Cities Research Center 
Unit Rig & Equipment Co. 
U.S. Bureau of Reclamation 
U.S. Environmental Protection Agency 
U.S. Filter Fluid Systems Corp. 
U.S. Steel Corp. 
Van Waters & Rogers 
WEMCO Corp. 

Westinghouse Electric Corp. 
Worthington Pump Co. 



28 

1.1. ENVIRONMENTAL— CAPITAL COSTS 

1.1.1. ENVIRONMENTAL ASSESSMENTS AND ENVIRONMENTAL IMPACT STATEMENTS 

Background information, guidelines, and generalized costs are presented in this sec- 
tion to assist in estimating costs for environmental studies. Time required to col- 
lect baseline data averages 1 to 3 years; however, as much as 5 years may be needed 
to finalize an environmental impact statement (EIS) for an environmentally sensitive 
area. 

BACKGROUND INFORMATION 

Environmental laws and regulations pertaining to the mining industry are continually 
being revised at the Federal, State, county, and municipal levels. To conform with 
existing environmental regulations, mining and milling operations must apply for 
permits at various stages of development (i.e., exploration, construction, opera- 
tion, and reclamation). In most cases, before permit applications, baseline infor- 
mation about the environment prior to commencement of mining and/or milling activity 
must be gathered. This study, usually prepared by an environmental con- suiting 
firm, is paid for by the mining-milling company and then presented to ap- propriate 
government agencies for an assessment of the impact of the mining-milling activity. 
If formal reports are required, i.e., an environmental assessment (EA) and/or an 
EIS, the mining-milling company must pay the majority of the cost for these studies 
also. 

Multiple environmental studies may be required for various stages of a mine-mill 
development and operation (i.e., exploration access, mine development, etc.). Mul- 
tiple studies are typical if a company has not made an economic feasibility decision 
on the mineral deposit. Conversely, a single environmental study may be sufficient 
for mining-milling from a specific area by more than one company (i.e., phosphate 
deposits in southern Idaho, coal seams in western Montana). 

GUIDELINES 

All developing or expanding mining-milling operations will sustain environmental 
study related costs. Ownership of land affected by a mining-milling operation (in- 
cluding utility lines, access roads, surface facilities, waste dumps, etc.) is the 
primary key in determining the amount of environmental studies required to satisfy 
environmental laws and regulations. Cost of an environmental study is directly re- 
lated to the complexity and variations associated with types of investigations nec- 
essary (see the following tabulation for study types and typical costs). 

Because of site-specific variations in each investigation, the cost range for envi- 
ronmental studies deviates immensely. The following guidelines will help the esti- 
mator determine environmental study costs: 

1. For an operation less than 100 mtpd, completely on private land without an- 
ticipated impacts to adjacent lands, cost for an environmental summary suf- ficient 
for permit applications would be $25,000 to $50,000. 

2. For an operation less than 100 mtpd, completely on private land with antici- 
pated impacts to adjacent lands, use the base cost of $25,000 to $50,000 and add the 
cost of the appropriate baseline study element from the following tabulation (i.e., 



29 

if ground water would be impacted, add the cost from the range for a ground water 
study). 

3. Use the cost from the following tabulation for a final EA for all operations 
over 100 mtpd with an anticipated insignificant impact to the environment, 
regardless of site ownership. Use proportionately higher costs for higher tonnages 
in each cost range. 

4. For operations on private, State, municipal, and /or Federal land with an an- 
ticipated moderate environmental impact, use the appropriate cost from the 
following tabulation for a final EIS. 

5. For operations on private, State, municipal, and/or Federal land with an an- 
ticipated significant impact to the environment, the cost for environmental studies 
is typically 5 times and may be up to 10 times the cost shown in the following 
tabulation for a final EIS. (For example, a 1,000-mtpd underground mine and 
adjacent mill planning to significantly alter the local hydrology, could face 
environmental study costs of $3.0 million. Environmental study costs for a 
1,500-mtpd surface mine adjacent to a wilderness area may be in the range of $6.5 
million). 

Typical cost ranges for environmental studies, thousand dollars 



Baseline study 


Underground 


Surface 






+2, 


000 


-2, 


000 


+2, 


000 


-2, 


000 


Cost modifying factors 


elements 


mt 


pd 


mt 


pd 


mt 


.pd 


mt 


pd 




Surface water. . . 


10- 


■ 35 


20- 


- 70 


10- 


- 70 


50- 


175 


Hydrology (i.e., number of 

streams), 3-25 sites per opera 
tion, site sampled 3-7 times 
per year, $1,000 per analysis. 


Ground water. .. . 


30- 


80 


60- 


-135 


30- 


-160 


100- 


250 


Hydrology, availability of sub- 
surface sample sites. 




10- 


60 


30- 


■100 


50- 


-150 


100- 


325 


Geography, proximity of meteoro- 
logic station. 




2- 


20 


10- 


■ 50 


2- 


- 20 


0- 


50 


Access to mining company data. 


Soil 


5- 


• 20 


15- 


■ 40 


10- 


■ 60 


40- 


90 


Existence of potential problems 
during operation (i.e., slope 






































stability), surface area. 




5- 


15 


10- 


• 40 


5- 


- 20 


15- 


60 


Surface area, endangered species. 




8- 


• 15 


10- 


■ 40 


8- 


- 20 


15- 


60 


Do. 




2- 


5 


3- 


■ 20 


2- 


- 10 


5- 


60 


Proximity to cities, national 
parks , scenic areas , wilderness 
areas, etc. 


Archeological. . . 


1- 


5 


2- 


■ 15 


1- 


- 5 


2- 


20 


If known archeological sites ex- 
ist, costs increase substantial- 
ly. 

Demographic characteristics. 


Socioeconomic . . . 


4- 


12 


5- 


■ 25 


4- 


- 12 


5- 


25 


Compile baseline 


6- 


12 


10- 


■ 20 


6- 


- 20 


10- 


150 


None. 


data. 






















85- 


■280 


175- 


■550 


130- 


-550 


350-1 


,265 


Do. 




15- 


30 


20- 


- 70 


15- 


-100 


70- 


300 


Do. 


Final EIS... 


100- 


■310 


195- 


■625 


145- 


-650 


425-1 


,565 


Do. 



EA Envrionmental assessment. 

EIS Environmental impact statement, 



30 

2.1. SURFACE MINING— CAPITAL COSTS 
2.1.1. EXPLORATION 

Exploration costs and data were partly derived from mining and exploration companies 
and contractors. However, credit is given to Mr. William Salisbury of Salisbury and 
Dietz, Spokane, WA, for his generous supply of data and overall review. 

Exploration can be defined as all the activities and evaluations performed in order 
to locate and define mineral deposits for the purpose of extraction now or in the 
future. 

Exploration covers a wide range of activities from that of a prospector searching 
for mineral outcrops to the sophisticated equipment in ground or airborne surveys 
attempting to detect hidden mineral deposits, followed by extensive sampling and 
logging of excavations or drilling programs. 

An organized exploration program consists of the four following principal stages: 

Stage 1. Regional Appraisal 

Stage 2. Detailed Reconnaissance of Favorable Areas 
Stage 3. Detailed Surface Appraisal of Target Areas 
Stage 4. Detailed Three-Dimensional Sampling and 
Preliminary Evaluation 

Costs in this section are directed to those related to exploration activity at the 
level of "project" status. The point where a company's general exploration program 
is elevated to "project" status will differ from company to company (or project), 
but in general this transition is marked by such activity as land purchase or lease, 
claim staking, geophysical and geological surveys, drilling, etc. In any case, ex- 
ploration expenditures and efforts increase dramatically over a small unit area. 
Labor costs are the major cost component and drilling is most often the principal 
cost item for a project. Exploration costs will range widely depending on methods 
used, size of project, commodity sought, remoteness, terrain and vegetation condi- 
tions, weather, geologic complexity, etc. 

Detailed Surface Appraisal of Target Areas 

If the results of the detailed reconnaissance are favorable, they may indicate 
areas ranging in size from 3 to 130 km^ where more detailed in- vestigation is 
warranted. This stage of investigation would include all of the ground survey tech- 
niques or methods which were used in stage 2, but with more refinement, closer in- 
tervals, and greater detail. The methods or techniques used might include addition- 
al outcrop examination, geologic mapping, boulder tracking, rock and specialized 
sampling, and possibly assaying. In addition, the various ground geophysical stud- 
ies including gravity, magnetic, radiometric, seismic, resistivity, self-potential, 
and induced polarization would be made. Possibly, this stage would also warrant 
some trench excavation and drilling, plus field and laboratory tests. Unit costs 
for the various techniques or methods are given in the exploration tabulation. 



31 

Detailed Three-Dimensional Sampling and Preliminary Evaluation 

A detailed three-dimensional survey or sampling of a target area ranging in size 
from 1 to 25 km^ or more would be made if it appeared that an economical ore body 
existed. The sampling or survey would be made to determine boundaries or limits and 
depth, size, shape, mineralization, and grade. This stage of exploration would pro- 
bably include an extensive drilling program together with borehole logging and geo- 
logic mapping. Excavation of test trenches, shafts, and adits might also be includ- 
ed. Samples would be taken, field and laboratory tests would be conducted, and as- 
says would be made to permit econ- omic evaluations to be made. The cost of the 
stage 4 exploration could vary greatly depending on location, accessibility, ground 
cover, type of deposit, and the extent of a drilling or excavation program. Unit 
costs for various techniques or methods are given in the following tabulation. 












32 



Exploration 



Description 



Manpower 



Manhours/unit Lhit Cost 



Remarks 



Geological Methods: 
Surface geological 
mapping 



Geological inference. 



Geophysical Methods: 
Gravitational survey. 



2 to A men 3 to 12/km 2 $75 to $275/km 2 



$275 to $760 /d 



1 geophysicist 
2- to 3-man 
survey crew 



12 to 50/ 
profile km 



$380 to $1100/ 
profile km 



Rate of production and cost depend 
on terrain, ground cover, complexity 
of geology, detail required, and 
scale of mapping. 

A qualified geologist interpret data 
shown on maps, photographs, or field 
investigations . 



Production varies from a few to 50 
readings per day depending on type 
of equipment. Production also de- 
pends on station spacing and ter- 
rain. Surveying is the costly phase 
of method. 



Magnetic Survey: 
Airborne 



1 to 3 men 



Ground 2 to 3 men 



4 to 6/ 
profile km 



$50 to $90/line 
km plus $2 to 
$16 /line km for 
inte rpretation 



$160 to $180/ 
line km 

$2.60 to $2.90/ 
grid point 



High sensitivity, helicopter, 
magnetic, electromagnetic, radio- 
activity surveys, etc., are usually 
taken concurrently from aircraft at 
400 to 800 line km/d. Production 
and cost depend on type of aircraft 
equipment, etc. 

Production depends on precision, 
spacing, of readings and type of 
readings, type of equipment, 
weather, terrain, and mode of 
travel. 



33 



Exploration — Continued 



Description Manpower Manhours/unit Ihit Cost Remarks 

Seismic survey: 

0- 150-m depth 2 to 7 men 1 to 4/depth $35 to $110/depth FOrtable equipment with 5 to 15 

determination determination determinations per day. 

150-m depth 15 to 20 men 5 to 10/depth $180 to $270/depth Vibroseis equipment with 3 to 15 

determination determination depth determinations per day. 

Very low frequency 2 men $315 to $385/line Includes about $40/line km for 

km. interpretation. 

Resistivity Survey 1 geophysicist 2 to 3/depth $57 to $114 /depth Nane. 

1 to 4 asst. determination determination 

Electromagnetic Survey: 

Airborne Usually taken concurrently with 

magnetic and radioactivity surveys 
from 1 aircraft at 400 line km or 
80 km 2 /d. 

Ground 1 to 4 men 1 to 6 /line $163 to $390/ Readings taken at 25- 50-m intervals 

km line km covering 5 to 10 km/d; dependent on 

on type of equipment, terrain, and 
mode of travel. 

EMP 3 men $4000/loop larameters: Approximately 60-m by 

$1290/Line km 120-m grid spacing; 430-m by 850-m 
$2900 /km 2 loop; 10 lines, 15 stations /line; 
10.3 km 2 costs include inter- 
pretation. 



34 



Exploration — Continued 



Description Manpower 

Geochemical methods: 

Stream sediment 1 man 
sampling 

Reconnaissance soil 1 man 
sampling 

Hjius sampling 

Biological sampling. 

Water samples 

lest pit: 
Trenching 

Earth 1 to 3 men 

Do. 

Rock. 3 men 

Do. 



Manhours/unit Lhit Oost 



Remarks 



$19 to $38 /km^ Depends on sampling interval ter- 
rain, access, and mode of travel. 

0.05 to 0.20/ $11 to $24/sample 50 to 200 samples/d depending on 
sample access, terrain, ground cover, and 

geologic complexity. 

$28 to $55 /sample None. 

$28 to $55/sample Do. 

$50 to $95/sample Do. 



0.1 to 2.0/m 3 
0.2 to 3.5/m 3 



Depends on whether hand or equipment 
excavated. 

$2 to $55^ 



$11 to $100M 3 



Helicopter cost and comparison 



35 



Manufacturer 
and model 



Approx 


Passenger 
capacity^ 


Effective 
(h.o .g.e.^ 


payload 
), kg 


Cruise 


cost /hl 


Speed, 


Range , 






Sea level 


2700m 


mph 


km 


$ 300 


2 


450 


360 


145 


240 


305 


2 


500 


360 


145 


350 


380 


4 


450 


320 


195 


550 


360 


4 


570 


360 


240 


560 


410 


4 


610 


550 


255 


480 


575 


4 


1,000 


900 


175 


480 


1,040 


14* 


2,100 


1,100 


195 


210 


1,855 


15* 


3,600 


2,500 


280 


560 



Hiller-Soloy 12-J... 

Bell-Soloy 47G3 

Bell 206B 

Hughes 500C 

Hughes 500D 

SUD Allouette Lama.. 

Bell 205 

Bell 214. 



-^Charter rate, includes fuel. 
^Without pilot. 
^Hovering out of ground effect. 
^Varies, maximum capacity given. 

Source: Modified and updated from William G. Salisbury. 



Analytic costs 



Assay 



Geochemical 



Assay 



Geochemical 



Aluminum 

Antimony 

Arsenic 

Barium 

Beryllium 

Bismuth 

Cadmium 

Chromium 

Cobalt 

Copper 

Copper oxide 

Fluorine 

Gold and silver... 
Iron 



$8.74 

8.98 

10.36 

10.12 

12.10 

7.59 

5.04 

7.75 

5.46 

4.96 

4.29 

NAp 

9.07 

5.94 



NAp 

$4.12 

4.32 

4.78 

NAp 
3.50 
2.46 
4.28 
2.15 
2.15 

NAp 
5.73 

NAp 
2.90 



Lead 

Lithium. . . . 
Magnesium. . 
Manganese. . 
Mercury. . . . 
Molybdenum. 

Nickel 

Platinum. . . 
Potassium. . 

Silica 

Silver 

Tungsten. . . 
Zinc 



$4.96 


$2.15 


7.42 


NAp 


9.11 


3.30 


6.60 


3.12 


9.75 


4.22 


5.98 


2.43 


4.96 


2.15 


27.72 


NAp 


8.41 


NAp 


10.36 


NAp 


8.45 


2.81 


11.02 


5.72 


4.55 


2.15 



NAp Not applicable. 

NOTE. — Sample preparation costs are assay — $1.85 and geochemical — $1.15. 
quantitative spectrographic analysis for 30 to 40 elements is $23.32. 



Semi- 



36 



Drill capacities (maximum, under ideal conditions) 







- HOLE LENGTH, METERS 


(feet) - 




Approx 


Drill Model 


EW 


AW 


BW 


NW (Nc) 


HW 


av weight 
lb (kg) 


Truck mounted 














-hauled: 














Jov 22 


NAp 


NAp 


900 (3000) 


600 (2000) 


NAp 


4000 (1800) 




270 (890) 


220 (720) 


NAp 


NAp 


NAp 


1075 (490) 




NAp 


520 (1700) 1 


430 (1400) l 


340 (1100) 1 


200 (700) 1 


3300 (1500) 




NAp 


940 (3100) 1 


700 (2400) l 


580 (1900) 1 


370 (1200) 1 


3300 (1500) 




NAp 


1500 (5000) 1 


1200 (3940) 1 


936 (3070) 1 


716 (2350) ! 


5100 (2300) 


Diamond Drill DDC 


NAp 


550 (1800) 


500 (1650) 


300 (1000) 


NAp 


1900 (860) 


CP 670 Rotary 


NAp 


NAp 


NAp 


NAp 


+300 2 (+1000) 2 




Helicopter 














transportable: 














Hydraulic Winkie.. 


NAp 


300 3 (1000) 3 


240 4 (800) 4 


44-30 5 (100) 5 


NAp 


550 (250) 




NAp 


370 (1200) 


NAp 


NAp 


NAp 


2500 (1100) 


Acker Mark III. . . . 


NAp 


520 (1700) 1 


430 (1400) 1 


340 (1100) 1 


NAp 


2600 (1200) 




NAp 


550 (1800) 


495 (1625) 


380 (1250) 


340 (1100) 


2860 (1300) 


Ingersol Rand T4W. 


NAp 


NAp 


NAp 


NAp 


760 2 (2500) 2 





NAp Not applicable. 

H} Series wire line. 

2Rated capacity. 

3 IEX. 

4 IAX. 

5bW. 



NOTE: Figures are maximum capacities under ideal conditions. 

Source: Data from William G. Salisbury, Salisbury & Dietz Inc., as collected from literature and as provided 

by contractors, May 1980. 



37 

DRILLING 

CORE DRILLING 

Core drilling varies from nonexistent to extensive, depending on many unknown fac- 
tors. Core drilling is performed on centers varying from 30- to 245 m and to vary- 
ing depths. The following tabulation gives the average range of costs for core dia- 
meter and depth of hole for drilling medium hard rocks. Costs could be higher or 
lower depending on hardness, location, access, and weather conditions. 



Drilling cost, dollars per meter 



Core 


Drilling depth range, m 


Size 


Diam , cm 


0-150 


150-300 


300-450 


450-600 


p Q { 

NC 1 

BX 


8.49 
6.10 
5.40 
4.13 
2.86 
2.22 


$100-$115 

62- 79 
59- 71 
49- 64 
43- 57 
36- 52 


$125-$138 
69- 85 
62- 75 
52- 69 
49- 62 
43- 59 


NAp 

$90 

80 

75 

70 

NAp 


NAp 

$100 

90 

85 

80 

NAp 



NAp Not applicable. 

-'-Primarily surface exploration core sizes. 

Subcontractor Factor If drilling is accomplished by a drilling subcontractor, 
multiply cost by 1.10 to compensate for subcontractor's markup. 



ROTARY DRILLING 

Conventional 

Reverse circulation 

Mobilization -demobilization. . . 

PERCUSSION DRILLING 

Downhole hammer 

Mobilization -demobilization. . . 



$125-$185/h; $7-$36/m. 
$125-$185/h; $ll-$39/m. 
$1,500-^2,500 and $1.90-^2. 20/km. 



$40-$59/m. 

$l,500-$2,500 and $1.90-^2. 20 /km, 



CAUTION: Drilling costs are impacted significantly by demand. Costs correlate 
poorly with industrial inflation factors. Base costs here are representative of 
January 1984 costs, a time of low drilling demand and very depressed prices for 
drilling contractors. 



38 



Contract downhole logging costs — survey changes 



Portable gamma ray rental 

Truck gamma ray surface profile resistivity 

Daily 

Weekly 

Monthly 

Directional survey 



Cost per-- 



Day 



Week 



NAp 

$420 
NAp 
NAp 
NAp 



NAp 

NAp 

$1,588 

NAp 

NAp 



Month 



$2,600 

NAp 

NAp 

4,646 

735 



Plus cost 
per meter 



NAp 

$0.69 
0.36 
0.36 
0.15 



i Month minimum. 

Loss of equipment charge--Contractee is charged for replacement value of 
equipment lost. Probes may cost $3,200 and cable may cost $2.30/m. 

Mobilization-demobilization charge - $50/d/person; $0.90/mile over 100 mile/d 
mobilization. 

GAS—MILEAGE: 

Assume on average, 80 mi/d for 18 days going to field project. 

Total miles = 1,440 miles. 
Assume 300 miles are driven each way going to and from project. 

Total miles = 600 miles. 

1,440 miles + 600 miles = 2,040 miles 
(2,040)($0.10/mi) = $204/month 

Assume: 20 working d/month, 10 days off/month (8 days rest and 2 days 
off, holiday, weather, project supervisor discussions). 



LABOR 



Annual salary equivalent 
(overhead) 



Sampling program 
work schedule 



Supervisor, 



Full-time geologist 
Part-time sampler.. 



1 supervisor 

1 full-time geologist.... 
1 part-time sampler 



$36,000 (35%) 






4 d/month 
(includes travel, 
supervisory, and 
interpretation. ) 


26,000 (35%) 






Full-time 
(20 d/month). 


18,000 (15%) 






Full-time 
(20 d/month). 


Annual cost plus 






$/sampling 


salary overhead 


Per month 


project month 


$48,600 


$4 


,050 


$ 810 


35, 100 


2 


,925 


2,925 


20,700 


1 


725 


1,725 



Pay total for month, 



$5,460 



39 



Per diem 


Days on 


Total 


rate 


per diem 
2.75 


per diem 


$50 


$ 137.50 


50 


19.0 


950.00 


50 


19.0 


950.00 
2,037.50 

2,038.00 



TRAVEL: 

A. Per diem: 



Supervisor 

Full-time geologist. 
Part-time sampler... 

Per diem total for 
month. 

B. Vehicle Cost: 

Assume on average 300 miles to project area and 
80 miles driven to and from point of lodging. 

1. Geologist and Sampler 

Vehicle is 4 x 4 Ford Bronco, lease rate is $1,200 month, mileage free. 
Assume vehicle uses unleaded gas costing $1.10/gal at a rate averaging 12 
mi /gal. 

$1.10/12 = 9.2<//mi + 0.8<//mi oil and lube = lOtf/mi 

a. Gas cost 

1. Miles to and from project area: 

300 mi /trip x 2 trips /work period x 2 trips /month 
= 1,200 mi /month. 

2. Miles to and from field lodging to project: 

17 one-way trips x 40 miles x 2 work periods 
= 1,360 mi /month. 

Total cost = (1,200 miles + 1,360 miles) (lOtf /mi) = 
fc256 /month. 

b. Four-wheel drive rental-lease - $l,200/month, unlimited 

mileage, Ford Bronco. 

2. Supervisor 

Assume supervisor makes one trip per month to project area. Day of travel 
each way. 

Assume vehicle cost of supervisor is 25^ /mi. 

Monthly gas cost: 300 miles x 2 (one-way trips from main office) 

600 
40 miles x 2 (motel to project) = 80 

680 miles 

680 miles x 25tf/mi = $170/month. 



40 

3 . Total Monthly Transportation Cost 

1. 4x4 vehicle gas cost $256 

2. 4x4 vehicle lease cost 1,200 

3. Supervisor vehicle-gas cost.... 1 70 

1,626 

SAMPLING SCHEDULE: 

20 d/month work schedule 

3 d/month travel (1.5 days spent on travel each 10-day work period) 
2 d/month laying out "zero" base lines 
0. 5 d/month sample handling 
5.5 days of nonsampling 

20 days less 5.5 days of nonsampling = 14.5 days of sampling per month. 

Sample rate (from Amselco, Inc., Montana) 

1. 30° to 40° slope, average open conditions, 100-ft spacing, 2 
persons with Brunton and tape working from previously from Amselco, 
surveyed base line. Equals 65 samples/d. 

Total samples/month = 65 samples/d x 14.5 days = 942.5 
samples /month. 

2. Flat and few obstructions, 100-ft sample intervals, estimated 100 
samples/8-h day. 

Total samples/month = 100 samples/d x 14.5 days = 1,450 samples/d. 

3. Thick underbrush, e.g., blackberries, vine maple, possible swamp. 

- add extra 2 d/month for base line. 

- estimate 25 to 50 samples/d, based on sampling interval 
(100-, 50-, 25-ft). 

- will use 38 samples/d. 

(38 samples/d )( 14. 5 days - 2 days) = 475 samples/month. 

MISCELLANEOUS FIELD EQUIPMENT COSTS: 

Sample Cost: 

Assume 70«f/sample. Includes sample bag, label, area map, flagging- 
marking, and postage. Others would include field clothing and equipment. 

Sample Preparation and Drying Prior to Assay (from Amselco, going rate): 

Preparation.. $0.80 

Drying 0.25 

Total 1.05 






41 



Total Sample Cost for Miscellaneous Field Equipment and Sample Preparation 

$0.70 
1.05 



1.75 



COST SUMMARY 



Labor (monthly) 

Salary , 

Per diem 

Transportation, 
Total , 



$5,386 
2,038 
1,626 
9,050 

Initial sampling costs 



Condition 


Cost per 
sample^ 


Field equipment and 
sample preparation 


Total cost 
per sample 




$6.24 

9.59 

19.05 


$1.75 
1.75 
1.75 


$8.00 
11.34 
20.80 



1-Based on a $9,050 labor cost per month. 

The above costs assume a relatively large long-term sampling program as opposed 
to a short 1-, 2-, 3-, or so, day sampling program. Per sample cost for the 
latter case could be substantially larger. 

The initial sampling costs were provided to an exploration contractor who is 
accustomed to doing this type of work. The contractor felt the initial samp- 
ling costs were low by $2.00 to $3.00 across the board. The explanation may be 
that additional in-office expenses are incurred such as planning, programming, 
plotting, map drafting, analytic plotting, etc. 

As a result, the initial per sample costs are increased to $2.50 and the totals 
are rounded to the nearest higher dollar. 

Sampling costs 



Condition 


Sample 
rate 


Field equipment and 
sample preparation 


Total cost 
per sample^ 




$7.99 
11.34 
20.80 


$2.50 
2.50 
2.50 


$11.00 
14.00 
24.00 



•■-Rounded . 



42 
2.2. SURFACE MINING— CAPITAL COSTS 
2.2.1. PREPRODUCTION DEVELOPMENT 
2.2.1.1. CLEARING 

The curve for clearing during pre product ion development is based on estimated costs 
for medium-light growth on terrain with a side slope of 20% to 50%. Estimate one 
tree, 0.33 m in diameter, per 40 m 2 . 

The total cost per hectare is the sum of three separate cost curves (labor, sup- 
plies, and equipment operation) having a clearing area (X), in total hectares. The 
curves are valid for operations between 1 and 1,000 ha (from 500 to 1,000 ha, the 
costs are expected to remain constant), operating one shift per day. This cost is 
multiplied by the total hectares cleared to obtain the capital cost. The curves 
include all daily operating and maintenance costs associated with clearing a land 
surface for further development . 

BASE CURVE 

(L) Labor Operating Cost (Y L ) = 2,171.220(X) -0 - 120 

The operating labor costs are distributed as follows: 

Direct labor 84% 

Maintenance labor 16% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Dozer operator 21% $16.33 

Truck driver 6% 15.89 

General laborer 73% 13.66 

The average wage for labor is $14.58 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 269. 796(X)~°* 0303 

For clearing operations from 1 to 500 ha, the supply cost consists of 78% fuel 
oil (for burning wood and scrub) and 22% tools, cables, and chokers. For oper- 
ations of 500 to 1,000 ha, the supply cost consists of 83% fuel oil and 17% 
tools, cables, and chokers. 

(E) Equipment Operating Cost (Y E ) = 667. 618 (X)~°* 0672 

Equipment operating costs consist of 87% for crawler dozers and 13% for trucks, 
pickups, and chainsaws. 

The general equipment cost component distribution is 



43 



Crawler dozers.. 

Trucks, pickups, 

and chainsaws.. 



Repair parts 


Fuel and lube 


Tires 


51% 


49% 


- 


14% 


80% 


6% 



ADJUSTMENT FACTORS 

Brush Factor For light clearing conditions where the growth consists mainly of 
brush and small trees, multiply the curves by the following factor: 

Brush factor (Yg LIGHT ^ = 0*25 

For heavy clearing conditions, defined as when clearing a dense growth of trees 
(diameter of the trees commonly exceeding 0.33 m), multiply the curves by the 
following factor: 

Brush factor (Yg DENSE^ = 1*75 

Side Slope Factor For clearing on terrain with side slopes other than 20% to 50% 
multiply the curves by the following factors: 

For clearing on terrain with side slopes of 0% to 20%, 

Side slope factor (Yg o%-20%) = 0.8 
For clearing on terrain with side slopes of 50% to 100%, 

Side slope factor (Y s 50%-100% ) = 1 * 2 
For clearing on terrain with side slopes greater than 100%, 

Side slope factor (Yg +100%) = 2.5 

Burning Factor When the burning of cleared brush and trees is prohibited due to 
environmental regulations, the brush and trees will have to be stacked or 
buried. If burning is prohibited, multiply the costs obtained from the curves 
by the following factors: 

Labor factor (F L ) = 1.2 

Supply factor (F s ) =0.2 

Equipment operation factor (Fg) =1.2 

Equipment Factor Where it is necessary to purchase equipment, or have a subcon- 
tractor perform the work, multiply the equipment operation value by the fol- 
lowing applicable factor in order to obtain the total value of equipment ex- 
pense for ownership and operation: 

Shifts per day 1 2 3 

Factor 1.75 1.56 1.50 



44 

Subcontractor Factor If a subcontractor is used, multiply the costs obtained from 
the curves by the following factors to compensate for subcontractor's markup. 

Labor factor (FjO = ^■•^ 

Supply factor (Fs) = 1*2 

Equipment operation factor (Fg) = ^-*2 



45 



Surface Mining— Capital Costs 



10,000 



© 

a 

o 
© 

-C 

u 
© 

a 



n 1,000 

a 



o 

T3 



m 
o 
a 



100 





! 1 1 | 1 1 


II ! I I T — 


Y L =2,171.220(X)~ ' 120 

Y s = 269.796(X) 

, -0.0672 . 
Y E = 667.61 8(X) 

1 <X< 500 


0. ■ 

Y L = 1.029.977(X) 

0.0 
Y s = 223.489(X) 

0.0 
Y E = 439.701 (X) 

500 < X< 1,000 




















1— 


or 


















































Equipment n ^ 


























w fC 


r atjon 






























Supplies 


i 

































































10 100 

AREA, total hectares 

2.2.1.1. Clearing 



1.000 



46 
2.2. SURFACE MINING—CAPITAL COSTS 
2.2.1. PREPRODUCTION DEVELOPMENT 
2.2.1.3. DRILL AND BLAST OVERBURDEN AND WASTE 

The curves have been developed in two parts. For mines excavating from 100 to 
8,000 mt of overburden and waste per day, the curves reflect costs for drilling 
6-m-high benches with crawler-type percussion drills. Spacing of 2.5-in (6.35-cm) 
holes is on a pattern of 1.5 by 2 m to a depth of 7 m. The powder factor is 0.30 
kg/mt. 

For mines excavating from 8,000 to 300,000 mt of overburden and waste per day, 
drilling is performed with rotary drills having a down pressure of from 13,600 to 
56,700 kg. The powder factor varies from 0.11 to 0.20 kg/mt waste with an average 
of 0.14 kg/mt waste. Holes drilled average 12.25-in (31.12-cm) diameter from a 
range of 6- to 13.75-in (15. 24-34. 93-cm) diameter. Costs are based on drilling 
hard rocks with an average compressive strength (2,100 kg/cm^). Bench heights 
are 12 to 18 m averaging 15 meters. Drilling patterns and overdrilling vary with a 
range of 100 to 300 mt of blasted material per linear meter of drill hole. Secon- 
dary drilling and blasting vary from 0% to 10% of blasted material. 

The total cost per metric ton is the sum of three separate cost curves (labor, sup- 
plies, and equipment operation) having a production rate (X), in metric tons of 
overburden and waste blasted per day. The curves are valid for operations between 
100 and 300,000 mtpd, operating three shifts per day. This cost is multiplied by 
the total metric tons of material blasted for development to obtain the capital 
cost. The curves include all daily operating and maintenance costs associated with 
drill and blast. 

BASE CURVE 

(L) Labor Operating Cost (percussion drill) (Y L PERCUSSION^ = 1*747 (X)~ 0,091 
The operating labor costs are distributed as follows: 

Direct labor 76% 

Maintenance labor 24% 

The direct labor costs consist of the following typical range of personnel: 

Small Large Av salary 

(100 to (3,000 to per hour 

3,000 mtpd) 8,000 mtpd) (base rate) 

Drilling crew ' 70% 83% $15.22 

Blasting crew 30% 17% 14.79 

The average wage for labor is $15.41 per worker -hour (including burden and 
average shift differential). 



47 



(L) Labor Operating Cost (rotary drill) (Y L ROTARY ) = 0.0417 (X) * 0353 
The operating labor costs are distributed as follows: 

Direct labor 43% 

Maintenance Labor 57% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 
per hour 
(base rate) 
Rotary and secondary 

drilling crews 67% $15. 24 

Blasting crew 33% 15.00 

The average wage for labor is $15.45 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (percussion drill) (Ys PERCUSSION^ = 30.278(X)~°* 496 
The supply costs include drill bits and steel -related items and blasting sup- 
plies in the following cost proportions: 

Small Large 

(100 to (3,000 to 

3,000 mtpd) 8,000 mtpd) 
Drill bits and 

steel-related items 10% 25% 

Blasting supplies 90% 75% 

(S) Supply Operating Cost (rotary drill) (Ys ROTARY ) = 0.147 (X) -0 ' 0160 

The supply costs for both curves include drill bits and steel-related items and 
blasting supplies in the following cost proportions: 

Small Large 

(8,000 to (100,000 to 

100,000 mtpd) 300,000 mtpd) 
Drill bits and 

steel-related items 26% 16% 

Blasting supplies 74% 84% 

(E) Equipment Operating Cost (percussion drill) (Y E PERCUSSION^ = !• 771(X)~0*182 
The equipment operating cost includes power for the drills, fuel and lubrica- 
tion for trucks and drill compressors, repair parts for drills and supporting 
equipment, and tire costs for supporting equipment. 

The equipment operating costs for percussion drill and blast are 86% for dril- 
ling equipment and 14% for trucks. 

The general equipment cost component distribution is 

Repair parts Fuel and lube Tires 

Percussion drills 58% 42% - 

Trucks 8% 87% 5% 



48 

(E) Equipment Operating Cost (rotary drill ) (Y E ROTARY^ = 0.0294(X) * 0567 

The equipment operating cost includes power for the drills, fuel and lubrica- 
tion for trucks and drill compressors, repair parts for drills and supporting 
equipment, and tire costs for supporting equipment. 

The equipment operating costs for rotary drill and blast are 95% for drilling 
equipment and 5% for trucks. 

The general equipment cost component distribution is 

Repair parts Fuel and lube Tires Power 

Rotary drills 79% 10% - 11% 

Trucks 11% 80% 9% 

ADJUSTMENT FACTORS 

Drill-and-Blast Factor (D & B factor) The curves indicate average costs for a wide 
range of materials, as can be noted above by drill sizes, bit sizes, powder 
factors, and drill pattern. To determine drilling and blasting costs, consid- 
eration must be given to material hardness, abrasiveness, natural fractures and 
jointing, and maximum-size fragments that can be loaded, hauled, and processed. 
Where the above conditions are favorable, multiply the costs obtained from the 
curves by the following factor: 

D & B factor (F D G00D> = °' 60 

Where the above conditions are unfavorable, multiply the costs by the following 
factor: 

D & B factor (F D SEVERE ) =2.00 

Equipment Factor Where it is necessary to purchase equipment or have a subcon- 
tractor perform the work, multiply the cost obtained from the equipment opera- 
tion curve by the following applicable factor in order to obtain the total 
value of equipment expense for ownership and operation: 

Crawler-type percussion drills: 

Shifts per day 1 2 3 

Factor 1.81 1.61 1.54 

Rotary drills: 

Shifts per day 1 2 3 

Factor 1.63 1.47 1.42 

Subcontractor Factor If a subcontractor is used, multiply the costs obtained from 
the curves by the following factors to compensate for subcontractor's markup. 

Labor factor (F L ) =1.50 

Supply factor (Fg) = 1.20 

Equipment operation factor (F E ) = 1.20 



49 



Surface Mining— Capital Costs 



a> 
E 

i_ 

Q. 



O 

h" 

CO 

o 
o 



10 



0.1 - 



0.01 























I I I I I II 






















Rotary Drill 

, N 0.0353 
Y L = 0.041 7(X) 

Y s =0.147(X)- a016 ° 
Y E = 0.0294(X) a ° 567 
8,000 <X< 300,000 ~- 






















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& 


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-abo 


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t 


quip 


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t 




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°Per 


°*/o n 












































Su 


:>P 


ies 










Percussion Drill 

Z , -0.091 
Y L = 1.747(X) 

, -0.496 
- Y s = 30.278(X) 

/ v -0.182 
Y E = 1.771 (X) 

100 <X< 8,000 


































L 


abor 














EauiDment operati 


on 
















































I I I I I I I 



100 



1,000 10,000 100,000 1,000,000 

OVERBURDEN AND WASTE, metric tons per day 

2.2.1.3. Drill and blast 
DRILLS 



50 

2.2. SURFACE MINING— CAPITAL COSTS 

2.2.1. PREPRODUCTION DEVELOPMENT 

2.2.1.4.1. EXCAVATION, LOAD AND HAUL OVERBURDEN AND WASTE 
BUCKET WHEEL EXCAVATION 

The total capital cost per metric ton is the sum of the three separate cost curves 
(labor, supplies and equipment operation) having a production rate (X), in metric 
tons of overburden and waste moved per day. The curves are valid for operations 
between 2,200 and 125,000 mtpd, operating three shifts per day. The cost is multi- 
plied by the total tons of material mined during development to obtain the capital 
cost. The costs include only the operation of the bucket wheel excavator. 

BASE CURVES 

The base curve is predicated on excavating overburden or waste material. The daily 
output of an excavator is based on the operating time and output efficiency of the 
machine. The base curve assumes an operating time of 50% and an output efficiency 
of 46%. The operating time is the percent of 24 h that a machine operates each 
day. The output efficiency is the percent of theoretical capacity that a machine 
delivers for a particular overburden. 

(L) Labor Operating Cost (Y L ) = 7.414(X) ' 556 

The operating labor costs are distributed as follows: 

Direct labor 65% 

Maintenance labor 35% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Bucket wheel operator 46% $16.78 

Bucket wheel helper 2% 13.66 

Bucket wheel laborer 16% 11.68 

The average wage for labor is $15.58 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost Y s = 0.058(X) * 859 

The supply cost consists of 100% electric power. 

(E) Equipment Operating Cost Y E = 0. 212 (X) ' 681 

The equipment operating cost consists of 100% for repair parts and materials. 

ADJUSTMENT FACTORS 

Shift Adjustment The curve is based on a three-shif t-per-day operation. 

Typically, bucket wheel excavators are run continuously. For a one- or 
two-shift operation, decrease the operating costs proportionately. 

Operating Time Factor The base case assumes a 50% operating time. Bucket wheel 



51 



excavators do not have high availabilities. The range of expected operating 
time is 41% to 60%. To adjust for different operating times, multiply the 
labor cost obtained from the curve by the following factor: 

Labor factor (F T ) = [50/(T)]°* 554 
where T = new percent operating time. 

The equipment operation cost curve and supplies cost curves are not modified. 

Output Efficiency Factor The output efficiency is the ratio of the actual produc- 
tion to the theoretical capacity of the bucket wheel excavator. The theoret- 
ical capacity is based on the number of bucket discharges per minute and the 
bucket size. The theoretical capacity is normally expressed in loose cubic 
meters per hour. The factors that determine the output efficiency are the dif- 
ficulty of digging (required cutting force), the percentage of clay or compact 
material in the bank and site-specific details such as climatology. The range 
of output efficiencies is from 44% to 85%. To adjust for a different output 
efficiency, multiply the costs obtained from the curves by the following 
factors: 

Labor factor (F L ) = [46/(E)]°- 555 

Supply factor (F s ) = [46/(E) ] * 858 

Equipment operation factor (F E ) = [46/(E)]°* 680 
where E = new percent output efficiency. 






10.000 



c 
o 



o 
*c 

<D 

E 

L. 

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a. 

91 

L. 

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-o 



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1,000 



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ning— 


Capital ( 


2osts 








































































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v£? 
























































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0- 


















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yf 


0.556 
Y L -7.414(X) 

, v 0.859 
Y s = 0.058(X) 

0.681 
Y E =0.212(X) 

2.200 <X<125.000 




,/ 


9 


y 










<y 














































ii i ill 



1.000 



10,000 100,000 

ORE, metric tons per day 

2.2.1.4.1. Excavation, load and haul 
BUCKET WHEEL EXCAVATION 



1.000,000 



53 

2.2. SURFACE MINING— CAPITAL COSTS 

2.2.1. PREPRODUCTION DEVELOPMENT 

2.2.1.4.2. EXCAVATION, LOAD AND HAUL OVERBURDEN AND WASTE 
DRAGLINE 

The curve for draglines covers the cost per metric ton for excavating and casting a 
medium-digging overburden and waste material from a dry pit into a spoil pile. The 
material is assumed to weigh 2 mt/m 3 for crawler (diesel-powered) draglines and 
1.5 mt/m 3 for walking (electric-powered) draglines. 

Crawler draglines range in size from 2- to 20-yd 3 capacity; walking draglines, 
from 16- to 50-yd 3 capacity. One dozer is provided for each dragline operation 
for cleanup and support. 

The total capital cost per metric ton for crawler draglines is the sum of two sep- 
arate cost curves (labor and equipment operation) and for walking draglines, the 
sum of three separate cost curves (labor, supplies, and equipment operation) having 
a production rate (X), in metric tons overburden and waste per day. The curve for 
crawler draglines is valid for a production range of 2,000 to 15,000 mtpd, operating 
one shift per day; for walking draglines, the curves are valid for a production 
range of 15,000 to 150,000 mtpd, operating three shifts per day. This cost is 
multiplied by the total metric tons of material mined during development to obtain 
the capital cost. The curves include all costs for operating and maintenance costs 
associated with dragline excavation. 

BASE CURVE 

(L) Labor Operating Cost (crawler dragline) (Y L CRAWLER^ = 43.884(X) -0 * 637 
The operating labor costs are distributed as follows: 

Small Large 

(2,000 to (10,000 to 

10,000 mtpd) 15,000 mtpd) 

Direct labor 59% 56% 

Maintenance labor 41% 44% 

The direct labor costs consist of the following typical range of personnel: 

Small Large Av salary 

(2,000 to (10,000 to per hour 

10,000 mtpd) 15,000 mtpd) (base rate) 

Dragline operator 41% 26% $18.11 

Oiler 24% 22% 15.89 

Dozer operator 25% 23% 16.33 

Utility operator 10% 29% 13.66 

The average wage for crawler dragline labor is $16.13 per worker-hour (includ- 
ing burden and average shift differential). 

(L) Labor Operating Cost (walking dragline) (Y L WALKING^ = 12. 249 (X) -0 * 458 
The operating labor costs are distributed as follows: 



54 

Direct labor 62% 

Maintenance labor 38% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Dragline operator 30% $18.11 

Oiler 26% 15.89 

Dozer operator 27% 16.33 

Utility operator 17% 13.66 

The average wage for walking dragline labor is $16.46 per worker-hour (includ- 
ing burden and average shift differential). 

(S) Supply Operating Cost (walking dragline) (Ys WALKING^ = 0.0395(X) * 003 
The supply cost consists of 100% electric power. 

(E) Equipment Operating Cost (crawler dragline) (Y E CRAWLER^ = 2.218(X) -0 * 312 
Equipment operating cost distribution for a crawler dragline operation is 

Dragline 70% 

Crawler tractors 25% 

Pickup trucks 5% 

(E) Equipment Operating Cost (walking dragline) (Y E WALKING^ = 0.533(X)" * 166 
Equipment operating cost distribution for a walking dragline operation is 

Dragline 66% 

Crawler tractors 31% 

Pick-up trucks 3% 

The general equipment operating cost component distribution for crawler and 
walking draglines and support equipment is 

Repair parts Fuel and lube Tires 

Walking draglines 94% 6% 

Crawler draglines 65% 35% 

Crawler dozers 49% 51% 

Rubber-tired support 8% 90% 2% 

ADJUSTMENT FACTOR 

Truck Loading To determine the cost of a crawler dragline operation loading to 

trucks, use the values obtained from the curve for electric shovels and trucks. 
Adjust the values by increasing each curve component 25% and combine the equip- 
ment operation and supplies curves to account for substitution of diesel fuel 
for electric power. (NOTE. — Supplies values for the electric shovels and 
trucks curve include only electric power.) 



55 



Surface Mining— Capital Costs 



c 
o 



E 

0) 

a 0.1 

(0 



o 
-a 



in 
o 
o 



0.01 





















i r 

Walkina 


Draal 


ine 




















, N - 0.458 
Y L =12.249(X) 

0.003 
Y s = 0.0395(X) 

, -0.166 
Y E = 0.533(X) 

15,000 <X< 150,000 


















— $3 




\< 


5k" 
















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J. 


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Crawler Dragline 

. .-0.637 
Y L = 43.884(X) 


^E= 
2.0C 


2.21 8 
)0 <X 


(x: 
< 

r ■ 


-0. 

15. 

■ 


3 
0( 


12 
DO 



















1,000 10,000 100,000 1,000,000 

OVERBURDEN AND WASTE, metric tons per day 

2.2.1.4.2. EXCAVATION, load and haul 
DRAGLINE 



56 

2.2. SURFACE MINING - CAPITAL COSTS 

2.2.1. PREPRODUCTION DEVELOPMENT 

2.2.1.4.3. EXCAVATION, LOAD AND HAUL OVERBURDEN AND WASTE 
ELECTRIC SHOVEL AND TRUCKS 

The curves show the cost per metric ton for excavating, loading, and hauling both 
common and shot rock. For common earth excavation, 1 bank m-^ equals 2.08 mt ; for 
shot rock, 1 bank m-^ equals 2.61 mt . 

The loading units are electric shovels and diesel front-end loaders ranging in size 
from 5 to 30 yd J , with an average of 15 yd . Rear dump trucks from 35 to 170 st 
are the main hauling units, with the average size of all trucks at 100 st . The ra- 
tio of trucks to loading units averages 6 to 1. The curves reflect an average haul 
of 2,000 m one way on an 8% grade from a pit 120 m deep on wide, well maintained 
roads. 

The total capital cost per metric ton is the sum of two separate cost curves (labor 
and equipment operation) having a production rate (X), in metric tons overburden and 
waste per day. The curves are valid for operations between 8,000 and 300,000 mtpd, 
operating three shifts per day. This cost is multiplied by the total metric tons 
of material mined during development to obtain the capital cost. The curves in- 
clude all daily operating and maintenance costs associated with load and haul. 

BASE CURVE 

(L) Labor Operating Cost (Y L ) = 2.694(X)~ * 210 

The operating labor costs are distributed as follows: 

Small Large 

(8,000 to (50,000 to 

50,000 mtpd) 300,000 mtpd) 

Direct labor 61% 53% 

Maintenance labor 39% 47% 

The direct labor costs consist of the following typical range of personnel: 

Small 

(8,000 to 

50,000 mtpd) 

Shovel operator 14% 

Oiler 6% 

Dozer operator 17% 

Grader operator 5% 

Front-end loader operator. . 3% 

Truck driver 52% 

General laborer 3% 

The average wage for labor is $16.54 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 0. 188(X)~°* 220 

The supply cost consists of 100% electric power. 



Large 




Av salary 


(50,000 


to 


per hour 


300,000 m 


tpd) 


(base rate) 


8% 




$18.11 


4% 




15.89 


23% 




16.33 


7% 




16.33 


1% 




16.33 


5 7% 




15.89 


- 




13.66 






57 

(E) Equipment Operating Cost (Y E ) = 1.850(X)~ 0,133 

The equipment operating cost covers the daily operating cost for all excava- 
tion, loading, and hauling equipment and includes allowances for repair parts, 
tires, lubrication, and fuel consumption. 

Equipment operating cost distribution for an electric shovel and truck opera- 
tion is 

Shovels 7% 

Rear-dump trucks 70% 

Crawler dozers 12% 

Rubber-tired support 11% 

The general equipment operating cost component distribution is 

Repair parts Fuel and lube Tires 

Shovels, electric 96% 4% 

Rear-dump trucks 25% 48% 27% 

Crawler dozers 50% 50% 

Rubber-tired support 35% 47% 18% 

ADJUSTMENT FACTORS 

Haulage Factor To determine costs for hauls of varying length or depth of pit, mul- 
tiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) = 0.117(R)°* 030 (L) * 263 

Equipment operation factor (F E ) = 0.055(R) 0,047 (L) 0,353 

where R = depth of pit, in meters (R = 1.0 for negative or 0% grade from 

loading point), 
and L = length of haul, in meters. 

Equipment Factor Where it is necessary to purchase equipment or have a subcon- 
tractor perform the work, multiply the costs obtained from the equipment opera- 
tion curve by the following applicable factor in order to obtain the total 
value of equipment expense for ownership and operation: 

Shifts per day 1 2 3 

Factor 1.89 1.67 1.60 

Subcontractor Factor If a subcontractor is used, multiply the costs obtained from 
the curves by the following factors to compensate for subcontractor's markup. 

Labor factor (F L ) =1.50 

Supply factor (F s ) = 1.20 

Equipment operation factor (Fg) =1.20 



58 



Surface Mining— Capital Costs 



a) 
E 






O 

•o 

t-* 
00 

o 
o 



0.1 



0.01 











































r 


£ 






























t 


f£nrer 


06 


3pe 


re 


rt/on 
























^i 


Or 














-Y L = 2 .694(xf a21 ° 

Y S = 0.188(X)- a22 ° 

_ e . -0.133 
Y E = 1.850(X) 

8,000 <X< 300,000 
















































































































\S 


^ 


% 




























1 













1,000 10,000 100,000 1,000,000 

OVERBURDEN AND WASTE, metric tons per day 

2.2.1.4.3. Excavation, load and haul 
ELECTRIC SHOVEL AND TRUCKS 



59 

2.2. SURFACE MINING— CAPITAL COSTS 

2.2.1. PREPRODUCTION DEVELOPMENT 

2.2.1.4.4. EXCAVATION, LOAD AND HAUL OVERBURDEN AND WASTE 
FRONT-END LOADER OR DIESEL SHOVEL AND TRUCKS 

The curve shows the cost per metric ton for loading and hauling both common and shot 
rock. For common earth excavation, 1 bank nw equals 2.08 mt; for shot rock, 1 
bank nH equals 2.61 mt. 

The curve is based on mines using front-end loaders or diesel shovels for loading 
and trucks for haulage. The loaders and shovels range in size from 1 to 6 yd-3, 
and the trucks range from 10 to 35 st. The curves reflect an average haul of 750 m 
one way on an 8% grade from a pit 60 m deep. 

The total capital cost per metric ton is the sum of two separate cost curves (labor 
and equipment operation) having a production rate (X), in metric tons overburden and 
waste per day. The curves are valid for operations between 1,000 and 10,000 mtpd, 
operating two shifts per day. This cost is multiplied by the total metric tons of 
material mined during development to obtain the capital cost. The curves include 
all daily operating and maintenance costs associated with excavation, loading, and 
haulage. 

BASE CURVE 

(L) Labor Operating Cost (Y L ) = 37.003(X)~ * 471 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor, 



70% 
30% 



The direct labor costs consist of the following typical range of personnel: 

Small Large Av salary 

(1,000 to (3,000 to per hour 

3,000 mtpd) 10,000 mtpd) (base rate) 

Loader-shovel crew 30% 21% $16.24 

Truck haulage crew 46% 37% 15.89 

Dozer operator 24% 17% 16.33 

Rubber-tired support crew.. - 25% 16.11 

The average wage for labor for operations less than 3,000 mtpd is $16.20 per 
worker-hour (including burden and average shift differential). 

The average wage for labor for operations greater than 3,000 mtpd is $16.42 per 
worker-hour (including burden and average shift differential). 

(E) Equipment Operating Cost (Y E ) = 24.620(X)~ 0,424 

The equipment operating cost distribution for loader /diesel shovel and truck 
operation is 



60 

Loader-shovel 18.1% 

Rear-dump truck 42.8% 

Crawler dozer 23.2% 

Rubber-tired support 15.9% 

The general equipment cost component distribution applies to the following 

equipment : 

Repair parts Fuel and lube Tires 

Shovel, diesel 69.6% 30.4% 

Frontend loader 32.5% 44.2% 23.3% 

Rear-dump truck 28.1% 51.6% 20.3% 

Crawler dozer 50.6% 49.4% 

Rubber-tired support 28.5% 62.7% 8.8% 

ADJUSTMENT FACTORS 

Haulage Factor To determine costs for hauls of varying haul length or depth of pit, 
multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) = 0.155(R)°' 030 (L) ' 263 

Equipment operation factor (F E ) = 0.080(R)°* 047 (L) * 353 

where R = depth of pit, in meters (R = 1.0 for negative or 0% grade from 

loading point), 
and L = length of haul, in meters. 

Equipment Factor Where it is necessary to purchase equipment or have a subcon- 
tractor perform the work, multiply the cost obtained from the equipment opera- 
tion curve by the following applicable factor in order to obtain the total 
value of equipment expense for ownership and operation: 

Shifts per day 1 2 3 

Factor 1.84 1.63 1.56 

Subcontractor Factor If a subcontractor is used, multiply the costs obtained from 
the curves by the following factors to compensate for subcontractor's markup. 

Labor factor (F L ) = 1.50 

Equipment operation factor (Fg^ = 1*20 



61 



Surface Mining— Capital Costs 



10 



c 
o 



E 



a. 

01 



o 

•a 

t-* 

o 

o 



0.1 





















































- ^""^t 0pe , 


'Qtt n ^ Bss& -^ 










'wjj ^j 
































Y L = 37.003(X) °' 471 

—0 424 
Y E = 24.620(X) " 

1,000 <X< 10,000 








I I I 



1,000 10,000 

OVERBURDEN AND WASTE, metric tons per day 

2.2.1.4.4. Excavation, load and haul 
FRONT-END LOADER OR DIESEL SHOVEL AND TRUCKS 






62 

2.2. SURFACE MINING—CAPITAL COSTS 

2.2.1. PREPRODUCTION DEVELOPMENT 

2.2.1.4.5. EXCAVATION, LOAD AND HAUL OVERBURDEN AND WASTE 
HYDRAULIC MINING 

The operating costs for hydraulic mining are given on a metric ton per day of waste 
slurried. The costs include the operation of the monitors and high-pressure water 
pumps. Not included in the estimates is the cost for pumping the slurry. The 
total capital cost per metric ton is the sum of the three separate cost curves 
(labor, supplies, and equipment operation) having a production rate (X), in metric 
tons of material slurried per day. The curves are valid for operations between 
9,500 and 58,000 mtpd, operating three shifts per day. This cost is multiplied by 
the total metric tons of material mined during development to obtain the capital 
cost . 

BASE CURVES 

The base curve is for the hydraulic mining of phosphate matrix. The matrix is ex- 
cavated by draglines and deposited in "pits," where hydraulic mining occurs. The 
hydraulic monitors (also called guns, giants, or water cannons) break down the ma- 
trix for pumping to the processing plant. The monitors are mounted on a pit gun 
car, which advances with the dragline. The base case assumes an 85% operating time 
and a water ratio of 0.67 mt of slurried ore per metric ton of water used. 

(L) Labor Operating Cost (Y L ) = 0.406(X) * 771 

The operating labor costs are distributed as follows: 

Direct labor 83% 

Maintenance labor 17% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 
per hour 
(base rate) 

Monitor operator 59% $16.78 

Monitor helper 33% 13.66 

Laborer 8% 11.68 

The average wage for labor is $15.65 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 0.883(X) 0,685 

The supply cost consists of 100% electric power. 

(E) Equipment Operating Cost (Y E ) = 0. 019 (X)°* 748 

The equipment operation curve consists of monitor repair parts and materials. 
The repair costs are divided 30% for water pumps and 70% for the monitor 
systems (hydraulic pumps, controls and monitors). 



63 

ADJUSTMENT FACTORS 

Water Ratio Factor Each deposit to be hydraulically mined will require different 
quantities of water, and therefore, different sizes or numbers of monitors. 
The more competent (tougher) the deposit, the more water that will be required. 
The measure of difficulty in slurrying the deposit is the mass ratio of ore ex- 
cavated to water used. To adjust the base curves for different water require- 
ments, multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) = [ 0.67/(R) ]°« 050 

Supply factor (F s ) = [ 0.67/(R) J 1 ' 285 

Equipment operation factor (F E ) = [ 0.67/(R) ] 0,327 

where R = new water ratio (mt ore slurried )/(mt water used). 

For phosphate, the water ratio can vary from 0.7 to 0.3. For other applica- 
tions it can vary from 1.5 to 0.2. 

Tailings Factor Hydraulic mining can be used to excavate old tailings ponds for the 
reprocessing of the tailings. This application normally requires higher water 
pressure and larger monitors. To adjust the base curves for the hydraulic 
mining of tailings, multiply the costs obtained from the curves by the fol- 
lowing factors: 

Labor factor (F L ) = 3.32 

Supply factor (F s ) = 1.51 

Equipment operation factor (Fg) = 1.12 

The tailings adjustment is based on a water ratio of 1.22 mt of tailings slur- 
ried per mt of water applied. 



64 



Surface Mining— Capital Costs 



10,000 



c 
o 



£ 1,000 

■*-> 
o 

E 



Q. 
0) 

L. 

_D 
"5 



CO 
O 
O 



100 



10 























■ 
Y L = 0.406(X) 

/ ^0.685 
' Y s = 0.883(X) 

, ,0.748 
. Y E = 0.01 9(X) 

9,500<X< 58,000 


















































x&^2 


















^V^V* 


















^i^ 
















s 


^ 






















































































































£\ 


\s~ 
















r- 













1,000 10,000 100,000 

OVERBURDEN AND WASTE, metric tons slurried per day 

2.2.1. 4.5. Excavation, load and haul 
HYDRAULIC MINING 



65 

2.2. SURFACE MINING— CAPITAL COSTS 

2.2.1. PREPRODUCTION DEVELOPMENT 

2.2.1.4.6. EXCAVATION, LOAD AND HAUL OVERBURDEN AND WASTE 
SCRAPERS 

The curves show the cost per metric ton for loading and hauling unconsolidated over- 
burden. Scraper production in metric tons per day is based on an assumed material 
having a weight of 2.2 mt/m^ and requiring ripping. 

The curves are based on a one-way haul of 900 m on a level grade and include a 6% 
rolling resistance in the pit area using wheel tractor-scrapers ranging in size and 
type from 150-hp self-loading elevating scrapers to 550-hp twin-engine scrapers. 

The total capital cost per metric ton is the sum of two separate cost curves (labor 
and equipment operation) having a production rate (X), in metric tons of overburden 
and waste per day. The curves are valid for operations between 2,000 and 300,000 
mtpd, operating three shifts per day. This cost is multiplied by the total tons of 
material mined during development to obtain the capital cost. The curves include 
all daily operating and maintenance costs associated with load and haul. 

BASE CURVE 

(L) Labor Operating Cost (Y L ) = 3.83KX) -0 ' 265 

The operating labor costs are distributed as follows: 

Direct labor 47% 

Maintenance labor 53% 

The direct labor costs consist of the following typical range of personnel: 





Av salary 




per hour 




(base rate) 


58% 


$17.33 


32% 


16.33 


10% 


16.11 



Scraper operator 

Crawler operator 

Rubber-tired support operator. 

The average wage for labor is $16.64 per worker-hour (including burden and 
average shift differential). 

(E) Equipment Operating Cost (Y E ) = 0.602(X)"°- 0747 

The equipment operating cost distribution for a scraper operation is 

Scraper 71% 

Crawler-dozer 24% 

Rubber-tired support 5% 

The general equipment cost component distribution applies to the following 
equipment: 



47% 


15% 


47% 


- 


52% 


12% 



66 

Repair parts Fuel and lube Tires 

Scraper 38% 

Crawler-dozer 53% 

Rubber-tired support 36% 

ADJUSTMENT FACTORS 

Haulage Factor To determine costs for varying haul lengths and grades, multiply the 
costs obtained from the curves by the following factors: 

Labor factor (F L ) = 0.0865(L)°' 359 (G) 1 ' 530 

Equipment operation factor (F E ) = 0.0641(L)°* 403 (G) 1 ' 620 

where L = length of haul, in meters, 

and G = grade [defined as 1.0 plus or minus percent grade/100]. 

Ripping Factor If no ripping is required, multiply the costs obtained from the 
curves by the following factor: 

Ripping factor (F R ) = 0.85 

Equipment Factor Where it is necessary to purchase equipment or have a subcon- 
tractor perform the work, multiply the cost obtained from the equipment opera- 
tion curve by the following applicable factor in order to obtain the total 
value of equipment expense for ownership and operation: 

Shifts per day 1 2 3 

Factor 1.76 1.57 1.51 

Subcontractor Factor If a subcontractor is used, multiply the costs obtained from 
the curves by the following factors to compensate for subcontractor's markup: 

Labor factor (F L ) =1.50 

Equipment operation factor (F E ) = 1.20 



67 



Surface Mining— Capital Costs 



c 
o 



E 

i_ 
o 
a. 

n 

_o 

15 

■o 



to 
o 
o 



0.1 

















i 




. -0.265 
Y L =3.831(X) 

. -0.0747 
Y^= 0.602(X) 

2.000 <X< 300,000 
























■("< 
























£qu, P/ 


Ti e ( 


Tf 




n\; 






N 







































1,000 10,000 100,000 1,000,000 

OVERBURDEN AND WASTE, metric tons per day 

2.2.1.4.6. Excavation, load and haul 
SCRAPERS 



68 

2.2. SURFACE MINING—CAPITAL COSTS 

2.2.2. MINING EQUIPMENT 

2.2.2.2. EXCAVATION, LOAD AND HAUL ORE 
BUCKET WHEEL EXCAVATORS 

The capital cost for bucket wheel excavation is for the acquisition and erection of 
bucket wheel excavators. The bucket wheel excavator is a single unit includes an 
excavating wheel, transporter, and discharge conveyor. The total capital cost is 
based on a single cost curve having an excavation rate (X) , in metric tons of ore 
per day. The curve is valid for operations between 2,200 and 125,000 tntpd, oper- 
ating three shifts per day. 

BASE CURVE 

The base curve is predicated on excavating overburden or waste material. The daily 
output of an excavator is based on the operating time and output efficiency of the 
machine. The base case assumes an operating time of 50% and an output efficiency 
of 46%. The operating time is the percent of 24 h that the machines operate each 
day. The output efficiency is the percent of theoretical capacity that the machine 
delivers for a particular overburden. 

The total cost includes the costs associated with the acquisition and erection of 
the bucket wheel excavator. The bucket wheel excavator includes a discharge con- 
veyor (from 8 to 25 m long), but not the in-pit conveying system. The costs are 
distributed as follows: 

Installation labor cost 1.2% 

Installation materials cost 0.1% 

Purchased equipment cost 94.7% 

Transportation cost 4.0% 

The installation materials are a small percentage of the overall costs since the 
bucket wheel excavator is delivered as a complete unit and erected in the field. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 1% 

Construction supply cost 1% 

Purchased equipment cost 95% 

Transportation cost 3% 

The total capital cost is (Y c ) = 1 , 660.446(X)°« 684 and is distributed as 

follows : 



(L) Construction Labor Cost (Y L ) = 16.604(X) °- 684 
(S) Construction Supply Cost (Y s ) = 16.604(X) ' 68Zf 
(E) Purchased Equipment Cost (Y E ) = 1 , 627. 238(X )°- 684 



69 

ADJUSTMENT FACTORS 

Operating Time Factor The base case assumes a 50% operating time. Bucket wheel ex- 
cavators do not have high availabilities. The range of expected operating time 
is 41% to 60%. To adjust for different operating times, multiply the cost ob- 
tained from the curve by the following factor: 

Operating time factor (F T ) = [50/(T)]°* 683 
where T = new percent operating time. 

Output Efficiency Factor The output efficiency is the ratio of the actual produc- 
tion to the theoretical capacity of the bucket wheel excavator. The theoret- 
ical capacity is based on the number of bucket discharges per minute and the 
bucket size. The theoretical capacity is normally expressed as loose cubic 
meters per hour. The factors that determine the output efficiency are the dif- 
ficulty of digging (required cutting force), the percentage of clay or compact 
material in the bank, and site-specific details such as climatology. The range 
of output efficiencies is from 44% to 85%. 

To adjust for different output efficiencies, multiply the cost obtained from 
the curve by the following factor: 

Output efficiency factor (F E ) = [46/(E) ] 0-682 
where E = new percent output efficiency. 



70 



Surface Mining— Capital Costs 



10,000 



CO 

1- 

"5 



1 1,000 
o 

CO 

o 

-C 



in 
O 
o 



100 













































































/ 


/ 




















/ 


/ 


V 


































































































/ 


/ 


























/ 




























, v 0.684 " 
Y C =1,660.446(X) 

2,200 <X< 125,000 


















V 



1,000 



10,000 100,000 

ORE, metric tons per day 

2.2.2.2. Excavation, load and haul 
BUCKET WHEEL EXCAVATORS 



1,000,000 



71 

2.2. SURFACE MINING— CAPITAL COSTS 

2.2.2. MINING EQUIPMENT 

2.2.2.3. EXCAVATION, LOAD AND HAUL ORE 
DRAGLINE 

The following cost curve Is for the purchase of surface mining equipment. Prepro- 
duction development work can be done using the equipment purchased for operating 
the mine; however, no reduction in the capital cost should be made if a subcon- 
tractor brings in his own equipment. 

The cost is predicated upon the equipment being delivered and made fully operable 
at an appropriate site in the Denver, CO, area. It also includes provision for 
standby equipment and an allowance for miscellaneous items. Escalation for pur- 
chased equipment should be factored by the Bureau of Labor Statistics equipment 
cost index. 

The types of equipment covered in the cost curve are all classes of mobile and sta- 
tionary machinery regularly found in surface mining, including compressors, drills, 
powder trucks, hydrocranes, wheel loaders, shovels, draglines, crawler dozers and 
rippers, on -highway and off-highway trucks, and administrative and maintenance 
equipment not previously included in other sections. The cost for other fixed sup- 
porting items, such as power transmission lines and some mobile support items such 
as fuel trucks, have been included with other capital cost items. 

The total capital cost is based on a single cost curve having an production rate 
(X), in metric tons of material per day. The curve for crawler draglines is valid 
for a production range of 2,000 to 15,000 mtpd, operating one shift per day; for 
walking draglines, the curves are valid for a production range of 15,000 to 150,000 
mtpd, operating three shifts per day. 

BASE CURVE 

The curve includes all costs associated with the purchase and installation of all 
surface mine equipment. The cost for fixed supporting items such as electric power 
transmission lines has been covered where specifically noted in other items. 

The capital cost derived from the dragline curves is a combination of the following 
costs: 

Construction labor cost 20% 

Construction supply cost 1% 

Purchased equipment cost 77% 

Transportation cost 2% 

A typical breakdown of the major cost components is 

Small Large 

(2,000 to (10,000 to 

Crawler dragline ; 10,000 mtpd) 15,000 mtpd) 

Draglines 64% 79% 

Auxiliary equipment 36% 21% 



72 

Walking dragline ; 

Draglines 97% (includes 20% erection cost) 

Auxiliary equipment.. 3% 

The total capital cost for a crawler dragline operation is 

(Y c CRAWLER^ = 1>069.304(X) 0,803 and is distributed as follows: 

(L) Construction Labor Cost (Y L CRAWLER) = 213.608(X) * 803 

(S) Construction Supply Cost (Y s CRAWLER) = 10.693(X) ' 803 

(E) Purchased Equipment Cost (Y E CRAWLER^ = 844. 750(X) ' 803 

The total capital cost for a walking dragline operation is 

(Y c WALKING) = 1, 054. 727 (X) 0,904 and is distributed as follows: 

(L) Construction Labor Cost (Y L WALKING^ = 210.945 (X)°* 904 

(S) Construction Supply Cost (Y s WALKING^ = 10.547 (X) * 904 

(E) Purchased Equipment Cost (Y E WALKING^ = 841.567 (X) * 904 

ADJUSTMENT FACTOR 

Haulage Where trucks are used in combination with crawler draglines, use loader and 
truck, or shovel and truck, curves and multiply by the appropriate hauling 
equipment component to obtain the truck haulage capital equipment cost, and add 
this cost obtained to the crawler dragline curve. 

To determine the cost where further handling of material is required from a 
walking dragline operation, add the cost derived from the electric shovel and 
truck curve multiplied by a factor of 0.89 (drill and blast equipment, 11% of 
the total, would not be required). 



73 



Surface Mining— Capital Costs 



100,000 



n 

L. 

o 

o 10,000 

T3 



n 

T3 

c 

D 

n 

3 
O 



o 

o 



1,000 



100 



r-j l 


i 

PphiuI 


E=3 


i 1 


C3 


1 1 






















Y C =1,069.304(X) * 81 
2,000 <X< 15,000 




























/ 














,/ 


/ 


/ 






































/ 


/ 


/ 


























/ 




























/ 


' 


























































/ 




















































> 


X 




























X 






























s 










































wal 
Y c = 1,0 


king c 
54.72 


ragiine 
7(X)°- 904 
















15,000 <X< 150,000 






I I 



1,000 



10,000 100,000 

ORE, metric tons per day 

2.2.2.3. Excavation, load and haul 
DRAGUNE 



1,000,000 



74 

2.2. SURFACE MINING—CAPITAL COSTS 

2.2.2. MINING EQUIPMENT 

2.2.2.4. EXCAVATION, LOAD AND HAUL ORE 
DREDGE 

Bucket line dredges are generally designed and configured for a specific mining ap- 
plication. For this reason, a generalized cost model cannot be accurately applied 
in capital cost estimating. However, for the manual user's guidance, the cost curve 
below provides a generalized estimate of capital costs, which should be used with 
caution. 

BASE CURVE 

The total capital cost is based on a single cost curve having an production rate 
(X), in bank cubic meters of material per day. The curve is valid for operations 
between 500 and 20,000 m^/d, operating three shifts per day. The curve is valid 
for single dredges in the dredging depth range of 10 to 50 m below the water pond 
level. The cost derived from the curve excludes ore beneficiation. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 25% 

Construction supply cost 25% 

Purchased equipment cost 49% 

Transportation cost 1% 

The total capital cost is (Y c ) = 34,972.765(X) 0, 627 and is distributed as 
follows: 

(L) Construction Labor Cost (Y L ) = 8,743.191(X)°* 627 

(S) Construction Supply Cost (Y s ) = 8,743.191(X) * 627 

(E) Purchased Equipment Cost (Y E ) = 17,486.382(X) ' 627 

ADJUSTMENT FACTORS 

Depth Factor To adjust the capital cost for actual dredging depths and swell 
factors, multiply the cost obtained from the curve by the following factor: 

Depth factor (F D ) = 0.10+[ 6.86(D)(S)- 1 * (X) _0 - 615 ] 
where D = actual depth, in meters, 

S = actual swell factor (the reciprocal of one plus the decimal 
equivalent of percent swell). The base swell factor is 0.80, 
and X = volume to be dredged, in bank cubic meters per day. 

Mineral Processing Factor To include the capital cost of a mineral processing plant 
(i.e., jigging or other gravity separation method) mounted on the dredge, mul- 
tiply the cost obtained from the curve by one of the following factors: 



75 



Minimal mineral processing: 

Mineral processing factor 

Some mineral processing: 

Mineral processing factor 

Complex mineral processing: 

Mineral processing factor 



( F M MINIMAL^ - 1*25 



(*i 



M SOME 



) = 1.37 



( F M COMPLEX > -1-50 



Multiple Dredges If the surface mine operation requires more than one dredge, esti- 
mate the capital cost separately for each dredge and apply the applicable 
factors to each cost. 

Refurbishing Factor Dredges built between the late 1930' s and the late 1960's can 
sometimes be refurbished at costs varying respectively from two-thirds to one- 
third of the costs derived from the curve. Multiply the cost obtained from the 
curve by its respective factor: 

Refurbishing factor (Fr 1935-51) = 0.67 

Refurbishing factor (Fr 1952-69^ = 0»33 

Refurbishing factor (Fr 1970-84^ = 1*00 






Surface Mining— Capital Costs 



100,000 



10 

"5 

T3 



c 10,000 
o 

(0 

o 

.c 



m 
o 

o 



1,000 































































































































































/ 










































































/ 


/ 




















, ,0.627 - 
Y c = 34,972.765(X) 

500 <X< 20,000 






/ 


r 










III I 11! 



100 



1,000 10,000 

ORE, bank cubic meters per day 

2.2.2.4. Excavation, load and haul 
DREDGE 



100,000 



77 

2.2. SURFACE MINING— CAPITAL COSTS 

2.2.2. MINING EQUIPMENT 

2.2.2.5. EXCAVATION, LOAD AND HAUL ORE 
ELECTRIC SHOVEL AND TRUCKS 

The following cost curve is for the purchase of surface mining equipment. Prepro- 
duction development work can be done using the equipment purchased for operating 
the mine; however, no reduction in the capital cost should be made if a subcon- 
tractor brings in his own equipment. 

The total capital cost is based on a single cost curve having an production rate 
(X), in metric tons of ore per day. The curve is valid for a production range of 
8,000 to 400,000 mtpd, operating three shifts per day. 

BASE CURVE 

The cost is predicated upon the equipment being delivered and made fully operable 
at an appropriate site in the Denver, CO, area. It also includes provision for 
standby equipment and an allowance for miscellaneous items. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 4% 

Construction supply cost 6% 

Purchased equipment cost 88% 

Transportation cost 2% 

A typical breakdown of the major cost components is 

Loading equipment 30% 

Hauling equipment 59% 

Drill and blast equipment 11% 

The total equipment capital cost for electric shovel and truck operation is 
(Y c ) = 5,281.346(X) 0,782 and is distributed as follows: 

(L) Construction Labor Cost (Y L ) = 211.254(X) 0, 782 

(S) Construction Supply Cost (Y s ) = 316. 881 (X) * 782 

(E) Purchased Equipment Cost (Y E ) = 4,753.211(X) * 782 

ADJUSTMENT FACTOR 

Haulage Factor To determine costs for hauls of varying length or depth of pit, mul- 
tiply the cost obtained from the base curve by the following factor: 

Haulage factor (F H ) = 0.0546(R)°' 047 (L) ' 353 

where R = depth of pit, in meters (R = 1.0 for negative or 0% grade from 

loading point), 
and L = length of haul, in meters 



78 



Surface Mining— Capital Costs 



1,000,000 



m 

o 100,000 



C 
D 
W 

3 
O 



£ 10,000 

o 
o 



1,000 









































































































































/ 




























/ 


























/ 


s 


























/ 










































































/ 
























































































\ 


, ,0.782 
r c = 5,281. 346(X) 


















8,000 <X< 400,000 





1,000 



10,000 100,000 

ORE, metric tons per day 

2.2.2.5. Excavation, load and haul 
ELECTRIC SHOVEL AND TRUCKS 



1,000,000 



79 

2.2. SURFACE MINING— CAPITAL COSTS 

2.2.2. MINING EQUIPMENT 

2.2.2.6. EXCAVATION, LOAD AND HAUL ORE 

FRONT-END LOADER OR DIESEL SHOVEL AND TRUCKS 

The following cost curves are for the purchase of surface mining equipment and are 

based on mines operating three shifts per day. Preproduction development work can 

be done using the equipment purchased for operating the mine; however, no reduction 

in the capital cost should be made if a subcontractor brings in his own equipment. 

The total capital cost is based on a single cost curve having an production rate 
(X), in metric tons of ore per day. The curve is valid for a production range of 
1,000 to 10,000 mtpd, operating three shifts per day. 

BASE CURVE 

The cost is predicated upon the equipment being delivered and made fully operable 
at an appropriate site in the Denver, CO, area. It also includes provision for 
standby equipment and an allowance for miscellaneous items. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 4% 

Construction supply cost 6% 

Purchased equipment cost 88% 

Transportation cost 2% 

A typical breakdown of the major cost components is 

Small Large 

(1,000 to (3,000 to 

3,000 mtpd) 10,000 mtpd) 

Loading equipment 41% 22% 

Hauling equipment 40% 51% 

Drill and blast equipment 19% 27% 

The total equipment capital cost for front-end loader or diesel shovel and truck 
operation is (Y c ) = 88,064.416(X) * 407 and is distributed as follows: 

(L) Construction Labor Cost (Y L ) = 3,522.577 (X) ' 407 

(S) Construction Supply Cost (Y s ) = 5,283.865(X) ' 407 

(E) Purchased Equipment Cost (Y E ) = 79,257.974(X) * 407 

ADJUSTMENT FACTOR 

Haulage Factor To determine costs for hauls of varying length or depth of pit, mul- 
tiply the cost obtained from the base curve by the following factor: 



80 



Haulage factor (F H ) = 0.080(R)°- 047 (L) 0,353 

where R = depth of pit, in meters (R = 1.0 for negative or 0% grade from 

loading point), 
and L ■ length of haul, in meters. 



81 



Surface Mining— Capital Costs 



10,000 



to 
o 
o 



CO 

T3 

c 
□ 

CO 

■D 

o 

.c 



I- 
O 

o 



1,000 











































"""" 














, ,0.407 
Y c = 88,064.41 6(X) 

1,000 <X< 10,000 




I I I 



1,000 



10,000 



ORE, metric tons per day 



2.2.2.6. Excavation, load and haul 
FRONT-END LOADER OR DIESEL SHOVEL AND TRUCKS 






82 

2.2. SURFACE MINING— CAPITAL COSTS 

2.2.2. MINING EQUIPMENT 

2.2.2.7. EXCAVATION, LOAD AND HAUL ORE 
HYDRAULIC MINING 

The capital cost for hydraulic mining is for the acquisition and installation of 
equipment needed to excavate or fluidize an ore. The hydraulic mining unit opera- 
tion includes the monitor, hydraulic controls and pumps for the monitors, control 
cab, and high-pressure water pumps. 

The total capital cost is based on a single cost curve having an production rate 
(X), in metric tons of ore slurried per day. The curve is valid for a production 
range of 9,500 to 58,000 mtpd, operating three shifts per day. 

BASE CURVE 

The base curve is for the hydraulic mining of phosphate matrix. The matrix is ex- 
cavated by draglines and deposited in "pits" where hydraulic mining occurs. The 
hydraulic monitors (also called guns, giants, or water cannons) break down the ma- 
trix for pumping to the processing plant. The monitors are mounted on a pit gun 
car which advances with the draglines. The base case assumes an 85% operating time 
and a water ratio of 0.67 mt of slurried ore per metric ton of water. 

The total cost includes the cost associated with the acquisition and installation 
of the monitors, hydraulic control units for the monitors, gun car, high-pressure 
water pumps, and piping around the gun car. Not included in the cost is the mine 
water system. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 9% 

Construction supply cost 15% 

Purchased equipment cost 75% 

Transportation cost 1% 

A typical breakdown of the major cost components is 

Water pumps 71% 

Monitors and control units.... 29% 

The total capital cost is (Y c ) = 232.640(X)°- 702 and is distributed as follows: 

(L) Construction Labor Cost (Y L ) = 20.938(X) 0, 702 

(S) Construction Supply Cost (Ys) = 34.896 (X) 0,702 

(E) Purchased Equipment Cost (Y E ) = 176.806 (X) * 702 

ADJUSTMENT FACTORS 
Water Ratio Factor Each deposit to be hydraulically mined will require different 



83 

quantities of water and therefore different sizes or numbers of monitors. The 
more competent the deposit, the more water that will be used. The measure of 
difficulty in slurrying the deposit is the mass ratio of ore excavated to water 
used. To adjust for different water requirements, multiply the cost obtained 
from the base curve by the following factor: 

Water ratio factor (F R ) = [ 0.670/(R) ] - 548 

where R = new water ratio (mt ore slurried)/ (mt water used). 

For phosphate, the water ratio can vary from 0.3 to 0.7. For other applica- 
tions it can vary from 0.2 to 1.5. 

Tailings Factor Hydraulic mining can be used to excavate tailings ponds for the re- 
processing of the tailings. This application normally requires higher water 
pressure and larger monitors. To adjust for hydraulic mining of tailings, mul- 
tiply the cost obtained from the base curve by the following factor: 

Tailings factor (F T ) =1.07 

The tailings adjustment is based on a water ratio of 1.22 mt of tailings slur- 
ried per metric ton of water applied. 



s. 



Surface Mining— Capital Costs 



1,000 



0) 

o 
o 



01 

c 
o 
n 

o 

.c 



tn 
o 
o 



100 

























































/ 


































/ 


/ 














0.702 
Y C =232.640(X) 

9,500 <X< 58,000 

■■ ' - - r r 1 ' 



1,000 



10,000 
ORE, metric tons slurried per day 

2.2.2.7. Excavation, load and haul 
HYDRAULIC MINING 



100,000 



85 

2.2. SURFACE MINING— CAPITAL COSTS 

2.2.2. MINING EQUIPMENT 

2.2.2.8. EXCAVATION, LOAD AND HAUL ORE 
SCRAPERS 

The following cost curve is for the purchase of surface mining equipment and is 
based on mines operating three shifts per day. Preproduction development work can 
be done using the equipment purchased for operating the mine; however, no reduction 
in the capital cost should be made if a subcontractor brings in his own equipment. 

The total capital cost is based on a single cost curve having an production rate 
(X), in metric tons of ore per day. The curve is valid for a production range of 
2,000 to 250,000 mtpd, operating three shifts per day. 

BASE CURVE 

The cost is predicated upon the equipment being delivered and made fully operable 
at an appropriate site in the Denver, CO, area. It also includes provision for 
standby equipment and an allowance for miscellaneous items. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 4% 

Construction supply cost 6% 

Purchased equipment cost 88% 

Transportation cost 2% 

A typical breakdown of the major cost components is: 

Scrapers 66% 

Pit equipment (crawler dozers). 26% 
Road equipment (graders, water 

trucks , pickup trucks) 8% 

The total equipment capital cost for scraper operation is (Yq) = 1,950. 766 (X)^* 7 61 
and is distributed as follows: 

(L) Construction Labor Cost (Y L ) = 78.031(X)°* 761 

(S) Construction Supply Cost (Y s ) = 117.046(X) * 761 

(E) Purchased Equipment Cost (Y E ) = 1,755.689 (X) * 762 

ADJUSTMENT FACTOR 

Haulage Factor To determine costs for hauls of varying length or depth of pit, mul- 
tiply the cost obtained from the base curve by the following factor: 

Haulage factor (F H ) = 0.064(L)°- 403 (G) 1 - 620 

where L = length of haul, in meters, 

and G = grade (defined as 1.0 plus or minus percent grade /l 00). 



86 



Surface Mining— Capital Costs 



100,000 



n 

L. 

| 10.000 



W 

c 
o 

o 

-C 



CO 

o 
o 



1,000 



100 













































































































X 






















... ^ 


/ 


























y 
























y 


y 


























,/ 










































































y 




























/ 




































































\ 


, ,0.761 
' c = 1,950. 766 (X) 


















2.000 <X< 250,000 


: 



1,000 



10.000 100,000 

ORE, metric tons per day 

2.2.2.8. Excavation, load and haul 
SCRAPERS 



1.000.000 



87 
2.2. SURFACE MINING— CAPITAL COSTS 
2.2.3. TRANSPORTATION 
2.2.3.1. AERIAL TRAMWAY 

The capital cost curve for the aerial tramway is for the acquisition and installa- 
tion of equipment for transporting ore or waste material over a slope distance of 3 
km at a slope angle of 15°. The bulk density of the material was assumed at 
1,442-5 km/m 3 (92.0 lb/ft 3 ). The aerial tramway system includes loading bin, 
apron feeders, tram cars, track and haulage ropes, loading and unloading terminals, 
anchor towers, intermediate (pivoted), towers, and the driving unit(s). 

The total capital cost is based on a single cost curve having a tramming rate (X), 
in metric tons of material moved per day. The curve is valid for a production 
range of 2,040 to 13,800 mtpd, operating three shifts per day. The curve includes 
all costs associated with the acquisition and installation of the equipment re- 
quired for loading, unloading, tramming, and driving units. 

BASE CURVE 

The capital cost derived from the curve is a combination of the following costs: 

Installation labor cost 19.0% 

Installation materials cost. 4.8% 

Equipment cost 73.5% 

Transportation cost 2.7% 

The total aerial tramway capital cost is (Y c ) = 208,182. 537 (X) * 385 and is dis- 
tributed as follows: 

(L) Installation Labor Cost (Y L ) = 39,554.682(X) * 385 

(S) Installation Materials Cost (Yg) = 9,992.762 (X) * 385 

(E) Purchased Equipment Cost (Y E ) = 158,635.093(X) ' 385 

ADJUSTMENT FACTORS 

Tramway Length Factor The curve is based on an aerial tramway of 3 km in slope 

length. To adjust for a different aerial tramway length, multiply the cost ob- 
tained from the base curve by the following factor: 

Length factor (Y L ) = 0.233(L)+0.302 

where L = slope length, in kilometers (not to exceed 20 km). 

Bulk Density Factor The base curve was calculated with a material bulk density of 
1,442.5 km/m 3 (92 lb /ft 3 ). To adjust the base curve for a different bulk 
density, multiply the base curve by the following factor: 

Bulk density factor (Y D ) = -0.00003(D)+1.043 

where D = bulk density, in kilograms per cubic meter. 



88 



Surface Mining— Capital Costs 



10,000 



en 

c 



o 



(0 

-a 
c 
o 
in 

o 

-C 



CO 

o 
o 



1,000 















■^ 
























































































0.38 
Y c = 208,1 82.537(X) 

2,040 <X< 13,800 


5 


1 ! ! 



1,000 10,000 100,000 

MATERIAL, metric tons transported per day 

2.2.3.1. Aerial tramway 



89 
2.2. SURFACE MINING—CAPITAL COSTS 
2.2.3. TRANSPORTATION 
2.2.3.2. AIRSTRIP CONSTRUCTION 

Airstrip construction cost curves give the cost per meter length of basic utility 
airstrips varying in width from 10 to 40 m. The airstrip described accommodates 
light single-engine and small twin-engine airplanes used for personal and business 
purposes, plus a broader spectrum of small business and air taxi-type twin -engine 
airplanes. These aircraft include the Cessna 150 series, Piper PA-32-300 Commander 
Six, Rockwell International 114 Commander, Beech B55 Baron, Cessna 310, and Piper 
PA-23-250 Aztec. 

BASE CURVE 

The total capital cost per meter length is based on a single cost curve having an 
airstrip width (X), in meters. The curve is valid for widths of 10 to 40 m, opera- 
ting one shift per day. Two surface options are offered, aggregate and asphalt. 
Not included in this curve are costs for acquisition or clearing of airstrip site, 
and hauling or rough leveling of fill materials. Both aggregate and bituminous as- 
phalt strips include base preparation (grading and rolling). The aggregate surface 
includes a base course of 1.9-cm stone, 15 cm deep followed by final grading and 
rolling. The asphalt surface consists of 31.9-cm stone, 10.2 cm deep, underlying 
3.8-cm thick rolled asphalt. No equipment capital costs are incurred. A 5% con- 
tingency of total capital cost covers ancillary airstrip facilities such as gas 
storage and pump, airstrip end and lateral markings, wind direction apparatus, and 
one T-hangar as needed. 

The capital cost derived from the curve is a combination of the following costs: 

Aggregate Asphalt 
Construction labor cost.... 20% 16% 

Construction supply cost... 80% 84% 

The total asphalt airstrip capital cost is (Y c ASPHALT ^ = 5.686(X) 1,000 and is 
distributed as follows: 

(L) Construction Labor Cost (Y L ASPHALT^ = 0. 910CX) 1 * 000 

(S) Construction Supply Cost (Y s ASPHALT^ = 4. 776 (X) 1 ' 000 

The total aggregate airstrip capital cost is (Y c AGGREGATE^ = 3. 471 (X) 1, 005 
and is distributed as follows: 

(L) Construction Labor Cost (Y L AGGREGATE^ = 0.694CX) 1 * 005 

(S) Construction Supply Cost (Y s AGGREGATE) = 2.776CX) 1 ' 005 

ADJUSTMENT FACTORS 

Runway Length Runway length requirement is primarily dependent on anticipated air- 



90 

craft use, temperature, and elevation. Aircraft type used in the cost curve 
was previously described. For convenience, an equation was derived to deter- 
mine length requirement when the elevation of the airstrip is known. The equa- 
tion is based on maximum temperature of 38° C (100° F). To determine dif- 
ferent lengths at different elevations, use the following equation: 

Runway length L - 891. 915e (0.0005)(E) 
where L = length of airstrip in, meters, 
and E = elevation, in meters. 

Runway Width Runway width requirement varies with wingspan of anticipated aircraft 
using the airstrip. An 18-m wide landing strip will accommodate the aircraft 
previously described. This width is advised for airstrip predesign costing. 
Actual width should be used when calculating capital costs of existing air- 
strips. 

Land Requirements Factor For estimation of land acquisition and clearing require- 
ments for airstrip landing area (includes airstrip pad and lateral-terminal 
clearances), use the following equation: 

Land area requirement in hectares A = 0. 012(L)+1.820 
where L = airstrip length, in meters. 

Subcontractor Factor If a subcontractor is used, multiply the curves by the follow- 
ing factors: 

Labor factor (Y L ) =1.50 

Supply factor (Ys) =1.20 



51 



1,000 



c 



O 
<D 

E 

i_ 
a 

a. 

0) 

i_ 
_o 

"o 
■o 



o 
o 



100 



10 





Surface Mining— 


Capital 


Costs 










































& 


£^\^ 








/^/ 








^ ^ 










^ ^^ 










Asphalt 

, J. 000 
Y c = 5.686(X) 

Aggregate 

1.005 _ 
Y c = 3.471 (X) 

10 < X < 40 


X- 








h~ 



10 



100 



WIDTH, meters 
2.2.3.2. Airstrip construction 



92 

2.2. SURFACE MINING— CAPITAL COSTS 
2.2.3. TRANSPORTATION 
2.2.3.4. RAILROAD CONSTRUCTION 

The cost in this section covers the capital expense for laying standard-gage track- 
age for main lines and spurs. The cost reflects railway installation by a crew 
that works on a one-shif t-per-day schedule; furthermore, the cost is based on 
trackage that is fully ballasted. 

BASE CURVE 

The total capital cost is based on a single cost curve having a railroad length 
(X), in total kilometers. The curve is valid for a length range of 1 to 60 km, op- 
erating one shift per day. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 26% 

Construction supply cost 69% 

Purchased equipment cost 5% 

The total railroad construction capital cost is (Y c ) = 188, 530. 000 (X) 1 ' 000 and 
is distributed as follows: 

(L) Construction Labor Cost (Y L ) = 49, OIT.SOOCX) 1 * 000 

(S) Construction Supply Cost (Y s ) = 130,085. 700CX) 1 ' 000 

(E) Purchased Equipment Cost (Y E ) = 9,426.500(X) 1 ' 000 

ADJUSTMENT FACTORS 

Ballast Factor For the installation of standard-gage trackage without ballast, mul- 
tiply the cost obtained from the base curve by the following factor: 

Ballast factor (F B ) = 0.85 

Roadbed Construction For construction expenses resulting from roadbed clearing, ex- 
cavation, and drilling and blasting, refer to Access Roads sections (2.2.6.1.1.- 
2.2.6.1.5.) and apply a roadway width of 6.1 m to the applicable cost equa- 
tions; the additional railway expenses so derived should then be added to this 
section's capital cost. 

Equipment Factor When it is necessary to purchase equipment or to have a subcon- 
tractor perform the work, multiply the equipment operation value by the fol- 
lowing factor in order to obtain the total value of equipment expense for own- 
ership and operation: 

Equipment operation factor (Yg) = 1.70 



93 



Subcontractor Factor If a subcontractor is used, to compensate for the subcon- 
tractor's markup, multiply the costs obtained from the curves by the following 
factors: 

Labor factor (Y L ) =1.50 

Supply factor (Y s ) - 1.20 

Equipment operation factor (Yg) =1.20 



94 



Surface Mining— Capital Casts 



100.000 



10 

l_ 

o 

o 10,000 



n 

c 
o 
n 

O 



to 

O 
(J 



1.000 



100 

































































































y 




















/ 






































/ 




















































,/ 






































/ 






































1.000 
Y c = 188,530.000(X) 

1 < X < 60 


' 










r~ 



10 
LENGTH, total kilometers 

2.2.3.4. Railroad construction 



100 



95 

2.2. SURFACE MINING— CAPITAL COSTS 

2.2.3. TRANSPORTATION 

2.2.3.5. LONG DISTANCE SURFACE CONVEYOR 

The cost curve shown is for the acquisition and erection of a long-distance surface 
conveyor. The conveyor is a single-flight belt conveyor made with high-strength 
steel belting. The conveyor is designed for a 10° slope and 1-k.m distance. Us- 
ually, the material is crushed or screened at the mine site before being conveyed. 
Screen and crusher capital costs are not included in this cost but are covered in 
separate sections. 

BASE CURVE 

The total cost is based on a single cost curve having a daily production rate (X), 
in metric tons material transported per day. The curve is valid for production 
rates of 15,000 to 150,000 mtpd, operating three shifts per day. The curve includes 
all costs associated with acquisition, installation of the belt, idlers, motors, 
channel, and frame, and site preparation. 

The long-distance surface conveyor capital cost derived from the curve is a combin- 
ation of the following costs: 

Construction labor cost 31% 

Construction supply cost 5% 

Purchased equipment cost 64% 

A typical breakdown of a long distance surface conveyor major cost components is: 

Conveyor belt 36% 

Idler assembly units 44% 

Motors, drive trains, belt cleaners, 

and other mechanical items 20% 

The total long distance surface conveyor capital cost is (Yq) = 81 ,292 .281(X)0* 3 9 
and is distributed as follows: 

(L) Construction Labor Cost (Y L ) = 25,200.607 (X) * 309 

(S) Construction Supply Cost (Y s ) = 4,064. 614(X) * 309 

(E) Purchased Equipment Cost (Y E ) = 52,027.060(X) ' 309 

ADJUSTMENT FACTORS 

Belt Life The conveyor belt, 36% of equipment cost, has an average wear life of 8 
to 10 yr of use, based on three shifts per day, 350 operating days per year, 
and depending on the abrasiveness of the material. The total replacement of 
the belt is standard procedure after excessive wear. 

Conveyor Length and Slope Factor The conveyor is 1-km long and has a 10° slope. 



96 

For other lengths and slopes, multiply the cost obtained from the base curve by 
the following factor: 

Conveyor length and slope factor (F L ) = [0. 917+0. 00940(S) ] [L/l] 

where L = length, in kilometers, 

and S = slope, in degrees, between 0° and 15°. 

The cost for a decline conveyor Is equal to that for a horizontal conveyor (0° 

slope) . 

Stacker-Tripper Factor If the material is conveyed to a processing plant or other 
end point such as a port facility, the capital cost for unloading from the con- 
veyor is included in those sections. If the material is waste rock, then the 
cost for a tripper or stacker should be added to the estimated capital cost. 
Costs for these items vary greatly but can range from $600,000 for a stacker or 
tripper that handles 15,000 mtpd waste material to $5,000,000 for a stacker or 
tripper that handles 150,000 mtpd of waste rock. 



97 



Surface Mining— Capital Costs 



10,000 



W 
"5 



en 

T3 

c 

D 

w 
o 

SI 



o 
o 



1,000 





























































































t N 0.309 
Y c = 81,292.281 (X) 

15,000 < X < 150,000 




I III 



10,000 100,000 

MATERIAL, metric tons per day 

2.2.3.5. Long distance surface conveyor 



1,000,000 



98 

2.2. SURFACE MINING— CAPITAL COSTS 
2.2.3. TRANSPORTATION 
2.2.3.8. SLURRY PIPELINE 

The capital cost curve for the slurry pipeline is for the acquisition and installa- 
tion of equipment for pumping a slurry 10 km at a lift of 150 m with a specific 
gravity of the solids of 4.3. The slurry pipeline circuit includes slurry storage 
tanks, booster and high -pressure slurry pumps, and the pipeline. 

The total capital cost is based on a single cost curve having a daily adjusted feed 
rate (X), in metric tons material transported per day. The curve is valid for a 
production range of 900 to 32,000 mtpd, operating three shifts per day. The curve 
includes all costs associated with the acquisition and installation of the required 
pumps, agitators, slurry tanks, and pipeline. 

BASE CURVE 

The slurry pipeline capital cost derived from the curve is a combination of the 
following costs: 

Installation labor cost 11.8% 

Installation materials cost. 32.9% 

Purchased equipment cost.... 54.6% 

Transportation cost 0.7% 

The capital cost is (Y c ) = 21,021.709 (X) * 546 and is distributed as follows: 

(L) Installation Labor Cost (Y L ) = 2,480.562(X)°* 546 

(S) Installation Materials Cost (Y s ) = 6, 916.142 (X) * 546 

(E) Purchased Equipment Cost (Y E ) = 11,625.005(X) * 546 

ADJUSTMENT FACTORS 

Slurry Pipeline Lift Factor The base curve was calculated for a slurry pipeline 
with a lift of 150 m. To adjust the base curve for a different lift, multiply 
the cost obtained from the curve by the following factor: 

Lift factor (F L ) = 0.0009(L)+0.871 
where L = length, in meters. 

Pipeline Length Factor The curve is based on a slurry pipeline 10 km in length. 
To adjust the base curve for different slurry pipeline lengths, multiply the 
cost obtained from the curve by the following factor: 

Length factor (F K ) = 0.026(K)+0.741 
where K = length, in kilometers. 

An estimate of average pipeline length can be made from table A-3 in the 

appendix. 



99 

Specific Gravity Factor The base curve was calculated for a slurry pipeline pumping 
solids with specific gravity of 4.3. To adjust the curve for a different spe- 
cific gravity, multiply the cost obtained from the curve by the following 
factor (an estimate of average specific gravity can be made from Table A-3 in 
the appendix): 

Specific gravity factor (F s ) = 0.023(S)+0.903 
where S = new specific gravity. 



100 



Surface Mining— Capital Costs 



10,000 



CO 

v_ 

a 
o 



w 

c 
o 

CO 

3 

o 

-C 



O 

u 



1,000 



100 





































































































^ 




/ 


X 












































• 


/ 






















































































































Y c 


9C 

... . 


2 



1,021. 

<x< 


709(X 
32.C 


JOG 

; 





100 1,000 10,000 100,000 

MATERIAL, metric tons transported per day 

2.2.3.8. Slurry pipeline 



101 
2.2. SURFACE MINING— CAPITAL COSTS 
2.2.4. MINE PLANT GENERAL OPERATIONS 
2.2.4.1. COMMUNICATIONS SYSTEM 

The communications system curve is based on installed costs for a radio network and 
surface telephone service. The radio system contains mobile and base units with 
one or more repeaters, depending on the size of the mine and the number of frequen- 
cies used, as well as portable radios. Telephone service costs are based on a com- 
plete telephone system, with installation by an outside agency. 

BASE CURVE 

The total capital cost is based on a single cost curve having an adjusted mine pro- 
duction rate (X), in metric tons ore and waste per day. The curve is valid for a 
production range of 1,000 to 400,000 mtpd, operating three shifts per day. The 
curve includes all costs associated with the acquisition and installation of 
telephones and telephone lines, mobile and base radio units, repeaters and repeater 
towers, control consoles, and portable radios. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 9% 

Purchased equipment cost 91% 

A typical breakdown of major cost components is 

Small Large 

(1,000 to (200,000 to 

20,000 mtpd) 400,000 mtpd) 

Telephones 1% 1% 

Telephone lines 2% 1% 

Mobile radios 53% 70% 

Base radios 24% 6% 

Control consoles 3% 1% 

Repeaters 5% 5% 

Repeater towers 3% 2% 

Portable radios 9% 14% 

The total capital cost is (Y c ) = 152. 086 (X) 0,656 and is distributed as follows: 

(L) Construction Labor Cost (Y L ) = 13. 687 (X) * 656 

(E) Purchased Equipment Cost (Y E ) - 138.398 (X) * 656 



102 



Surface Mining— Capital Costs 



1,000 



m 

a 

o 
-o 



» 

c 

D 
in 

O 

-C 



cn 
o 
a 



100 



10 





















































/ 


























/ 


/ 






















/ 


















































/ 


























/ 


/ 






















/ 


/ 






















/ 




























0.656 - 
Y C =152.086(X) 

1,000 <X< 400,000 


/ 
















II I III 



1,000 10,000 100,000 1,000,000 

ORE AND WASTE, metric tons per day 

2.2.4.1. Communications system 



103 
2.2. SURFACE MINING—CAPITAL COSTS 
2.2.4. MINE PLANT GENERAL OPERATIONS 
2.2.4.2. ELECTRICAL SYSTEM 

The cost shown is for the acquisition and installation of the primary skid-mount 
transformers dedicated to individual units of equipment, the necessary trailing 
cables, and ancillary pole-mount transformers (for mine shop, lighting, and/or 
pumping). The cost curves are based on total metric tons of ore and waste handled 
per day by an electric shovel-truck mining method or by a nonelectric shovel-truck 
mining method on a three-shift basis. All power is 25,000 V, 60 Hz, three-phase 
electricity to the transformer sites. To get power to the individual transformer 
sites, distribution lines, primary substations (if power demand is greater than 10 
MW) , and primary transmission lines (where location does not have close proximity 
to existing 115- or 230-kV lines for primary substation feed) must be accounted for 
(see section 2.2.6.2. Main Power Lines). 

BASE CURVE 

The total capital cost is based on two single cost curves having adjusted produc- 
tion rates (X) , in metric tons ore and waste per day. The curves are valid for a 
production range of 1,000 to 500,000 mtpd, operating three shifts per day. The 
curves include all costs associated with the acquisition and installation of port- 
able skid-mount transformers, pole-mount transformers, and trailing cables. 

The capital cost derived from the curve is a combination of the following costs: 

Nonelectric shovel Electric shovel 

(1,000 to (10,000 to 

10,000 mtpd) 500,000 mtpd) 

Installation labor cost 1 47% 10% 

Purchased equipment cost^ 53% 89% 

Freight cost - 1% 

A typical breakdown of major cost components is 

Nonelectric shovel Electric shovel 

(1,000 to (10,000 to 

10,000 mtpd) 500,000 mtpd) 

Skid-mounted transformers - 53% 

Pole-mounted transformers 100% 2% 

Trailing cable - 45% 

^Installation cost is composed of 90% labor and 10% equipment operation 
for nonelectric shovel mines and 97% labor and 3% equipment operation for 
electric shovel mines. The equipment operation cost is composed of 41% 
repair-maintenance labor, 34% repair parts, 23% fuel and lubrication, and 2% 
t ires. 

^Equipment costs include construction materials. 



104 

The total capital cost for nonelectric shovel mines is (Y c ) = 146.854(X)0*^ 12 
and is distributed as follows: 

(L) Installation Labor Cost (Y L nONELECt) = 69.02KX) 0,412 

(E) Purchased Equipment Cost (Y E N0NELECT) = 77.832(X) * 412 

The total capital cost for electric shovel mines is (Y c ) = 245. 054 (X) 0,660 and 
is distributed as follows: 

(L) Installation Labor Cost (Y L ELECT^ = 24.505(X) * 660 

(E) Purchased Equipment Cost (Y E ELEC^ = 220.548(X) 0,660 

ADJUSTMENT FACTORS 

Self-Generated Power Electric Shovel Operations If the mine uses self-generated 
power from a central location, then the cost of portable power (section 
2.2.4.6.) must be added to the cost from this section (power consumption ranges 
from 67 kW at 10,000 mtpd to 4,800 kW at 500,000 mtpd). 

Self-Generated Power Nonelectric Shovel Operations If the mine uses self-generated 
power from a central location, then the cost of portable power (section 
2.2.4.6.) must be added to the cost from this section (power consumption ranges 
from 1.9 kW at 1,000 mtpd to 20 kW at 10,000 mtpd). 

Portable Power Nonelectric Shovel Operations If the mine uses portable, self- 
contained, light-generator or pump-generator units in the pit, then the portable 
power section (section 2.2.4.6.) should be used in place of this section for 
mine plant only (power consumption ranges from 0.64 kW at 1,000 mtpd to 6.7 kW 
at 10,000 mtpd). 






105 



Surface Mining— Capital Costs 



10,000 



w 1,000 

o 

"5 
■o 



to 
■o 

c 

D 
W 

O 



CO 
O 
O 



100 



10 



1 
1,000 



. I II. 














Nonelectric shovel mine 

Y c = 146.854(X) a412 

1,000 <X< 10,000 












































/ 










^ 


s 


















y 












































































































































































Electric shovel mine 

, v 0.660 " 
Y c = 245.054(X) - 

10,000 <X< 400,000 " 
































































i iii 



10,000 
ORE AND WASTE, metric tons per day 



100,000 



2.2.4.2. Electrical system 



106 

2.2. SURFACE MINING—CAPITAL COSTS 
2.2.4. MINE PLANT GENERAL OPERATIONS 
2. 2. A. 3. FUELING SYSTEM 

This curve is representative of the cost of fueling systems handling diesel fuel, 
gasoline, lubricants, coolants, and waste oil for truck haulage systems. It is 
based on one stationary fueling point and one or more mobile units. Any building 
required for fueling facilities is covered in section 2.2.4.9. (Surface Buildings). 
Tanks are sized on the basis of a weekly refilling. 

BASE CURVE 

The total capital cost is based on a single cost curve having a daily production 
rate (X), in metric tons ore and waste per day. The curve is valid for a produc- 
tion range of 1,000 to 400,000 mtpd, operating three shifts per day. The curve in- 
cludes all costs associated with acquisition and installation of tanks, pumps, and 
mobile units. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 8% 

Construction supply cost 3% 

Purchased equipment cost 89% 

A typical breakdown of major cost components is 

Small Large 

(1,000 to (17,000 to 

17,000 mtpd) 400,000 mtpd) 

Tanks 29% 50% 

Pumps 10% 13% 

Mobile units 61% 37% 

The total capital cost is (Y c ) = 15.385 (X) * 855 and is distributed as follows: 

(L) Construction Labor Cost (Y L ) = 1.230(X) * 855 

(S) Construction Supply Cost (Y s ) = 0.462(X) ' 855 

(E) Purchased Equipment Cost (Y E ) = 13.692(X) * 855 



107 



Surface Mining— Capital Costs 



1,000 



n 

o 

o 100 



0) 

C 

o 
en 

3 
O 



CO 
O 
O 



10 



1 
1,000 

























A 




























/ 


























/ 


<■ 






















S 




















































/ 


























/ 


/ 


























/ 










































































/ 


' 


























/ 




























r 












































Y C =15.385(X)°- 855 
1,000<X< 400,000 
















S- ■ i , 





10,000 100,000 

ORE AND WASTE, metric tons per day 

2.2.4.3. Fueling system 



],000,000 



108 

2.2. SURFACE MINING—CAPITAL COSTS 
2.2.4. MINE PLANT GENERAL OPERATIONS 
2.2.4.5. OFFICES AND LABORATORIES 

The cost curves for offices and laboratories include construction of general of- 
fices, engineering and safety offices, and laboratories, including furnishings as 
well as all necessary assay equipment. Building costs are based on masonry two- 
story buildings. In this section, office and laboratory capital costs are present- 
ed separately. 

BASE CURVE 

The costs obtained from these curves are based on the assumption that these facili- 
ties will be used only for mining operations. If the mine and mineral processing 
plant are to share the same facilities, the user must determine, using a knowledge 
of the requirements, what can be jointly used and apportion the resulting costs to 
the mine and plant. 

OFFICES 

The total capital cost is based on a single cost curve having an area (X), in 
square meters of office space or on a single cost curve having a production rate 
(T), in metric tons ore and waste per day. The curve is valid for areas of 40 to 
9,600 mS or 800 to 500,000 mtpd, operating one shift per day. The capital cost 
curve for offices includes construction of administrative, engineering, and safety 
office space, as well as office furnishings. 

If office space requirements are known, the capital cost estimate may be made di- 
rectly by consulting the cost curve; if space requirements are not known, they can 
be estimated from the following equation: 

Square meters of office space = 0. 511(T)0* ^46 

where T = metric tons of ore and waste mined per day. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 38% 

Construction supply cost 48% 

Purchased equipment cost 14% 

The total office capital cost is (Y c SQUARE METERS^ = 651.940(X) ' 968 
and is distributed as follows: 

(L) Construction Labor Cost (Y L OFFICES-SQ M> = 247. 737(X) * 968 
(S) Construction Supply Cost (Y s OFFICES-SQ M> = 312.93KX) ' 968 
(E) Purchased Equipment Cost (Y E OFFICES-SQ M> = 91.272(X)0*968 



109 

The total office capital cost is (Y c MTPD^ = 336.202(T) ' 723 and is distributed 
as follows: 

(L) Construction Labor Cost (Y L OFFICES-MTPD^ = 127. 756(T) 0,723 

(S) Construction Supply Cost (Ys OFFICES-MTPD^ = 161.376(T) 0, 723 

(E) Purchased Equipment Cost (Y E OFFICES-MTPD^ = 47.068(T) 0,723 

LABORATORIES 

The total capital cost is based on a single cost curve having an area (X), in 
square meters of laboratory space or_ on a single cost curve having a production 
rate (T), in metric tons ore and waste per day. The curve is valid for areas of 40 
to 1,200 m 2 , or 800 to 400,000 mtpd, operating one shift per day. The capital 
cost curve for assay laboratories includes construction of sample preparation and 
analytical laboratory space as well as crushing and assaying lab equipment. 

If laboratory space requirements are known, the capital cost estimate may be made 
directly by consulting the cost curve; if space requirements are not known, they 
can be estimated from the following equation: 

Square meters of laboratory space = 1.760(T)0.475 
where T = ore and waste mined, in metric tons per day. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 34% 

Construction supply cost 37% 

Purchased equipment cost 29% 

The total laboratory capital cost is (Y c SQUARE METERS^ = 1 j296.566(X) 0,885 and 
is distributed as follows: 

(L) Construction Labor Cost (Y L LABS-SQ m ^ = 440.832(X) 0,885 

(S) Construction Supply Cost (Y s labs-SQ M> = 479.729(X) 0,885 

(E) Purchased Equipment Cost (Y E LABS-SQ m) = 376.004(X) * 885 

The total laboratory capital cost is (Y c MTPD^ = 2,118.290(T) 0,421 
and is distributed as follows: 

(L) Construction Labor Cost (Y L LABS-MTPD^ = 720.218(T) * 421 
(S) Construction Supply Cost (Ys LABS-MTPD^ = 783.767(T) 0#421 
(E) Purchased Equipment Cost (Y E laBS-MTPD^ = 614.304(T) '^ 21 



110 

ADJUSTMENT FACTORS 

Shift Adjustment The square meters of laboratory space required is based on a 
three-shift operation. To adjust the capital cost for a different number of 
daily operating shifts, multiply the actual daily tonnage by the ratio of the 
base number of shifts (3) divided by the number of desired shifts. Then, use 
this modified production rate in place of actual daily tonnage in the above 
area versus tonnage equation to obtain the adjusted area. Then, enter the ad- 
justed area in the cost equation to obtain the adjusted capital cost. The 
square meters of office space is not contingent on the number of shifts and re- 
quires no adjustment. If the number of square meters of laboratory space is 
known, do not use this adjustment factor. 

Temperature Factor The buildings are based on temperature requirements for the 
Denver, CO, area. For milder areas multiply the costs obtained from the base 
curve by the following factor: 

Temperature factor (F^ MILD^ = 0*94 

For more severe areas multiply the costs obtained from the base curve by the 
following factor: 

Temperature factor (Fj SEVERE ^ = 1«08 

Wind and Snow Load Factor The building are based on typical Denver, CO, area re- 
quirements for an equivalent combined wind and snow load of 20 lb/ft^. To 
adjust the costs for more severe conditions (greater than 40 lb/ft^), multi- 
ply the cost obtained from the base curve by the following factor: 

Wind and snow load factor (Fg SEVERE^ = 1*03 



Ill 



Surface Mining— Capital Costs 



10,000 



~o 
■o 



m 

c 
o 

CO 

3 

o 

s: 



o 
o 



1,000 



100 



10 














i 


















Laboratories 

, x 0.885 
Y C =1,296.566(X) 

40 <X< 1,200 














































































































,/ 


























/ 


'/ 
























/ 


? 


r 
























/ 






















4 


y 
























// 
























/ 


/ 


/ 






















/ 


/ 


/ 
























/ 












Y 


Offices 

, N 0.968 
r =651.940M 


















■ 


L- 

— ' 


80 <) 


<< 9. 


60( 




i 



10 



100 1,000 

AREA, square meters 

2. 2. 4.5. a Offices and laboratories 



10,000 



112 



Surface Mining— Capital Costs 



10,000 



m 

D 



O 
T3 



0) 
TJ 

C 

a 

W 

u 
o 

SI 



o 
o 



1,000 



100 



10 



I 


























Offices 
Y C =336.202(X)° 
800 <X< 500,000 


































































/ 
















































/ 


/ 


/ 
































,/ 


/ 




































/ 


































°/ 


/ — 










<S 






















/ 


/ 


g. 


4 


























/ 


A 


\ 


y 


& 


























/ 


r 


































/ 




































/ 


^s 




























Laboratories 

Y c = 2,118.290(X) a421 

800 <X< 400,000 










y 




































S" ! \-—-\-\\ 



100 



1,000 10,000 100,000 1,000,000 

ORE AND WASTE, metric tons per day 

2.2.4.5. b Offices and laboratories 



113 
2.2. SURFACE MINING— CAPITAL COSTS 
2.2.4. MINE PLANT GENERAL OPERATIONS 
2.2.4.6. PORTABLE POWER GENERATION 

This section is to be used in conjunction with section 3.2.4.6. when electrical 
power is unavailable through a commercial power utility company or when it would be 
uneconomical to run power distribution facilities to the user. No adjustments are 
necessary for the mine (sections 2.2.4.2., 4.2.5.3.) or mineral processing plant 
(section 6.1.8.4, IC 9143) electrical system because output power matches the power 
input to the mine-processing plant transformer-switchgear substations. 

The cost shown is for acquisition and installation of the primary power source, 
either a horizontal-diesel or a gas-turbine operated generator. The cost curve 
is based on a single 60-Hz, three-phase electrical generator providing all power at 
the rated kilowatt output. This section should be included in the mine and /or min- 
eral processing plant capital cost totals. 

BASE CURVE 

The total capital cost is based on a single cost curve having an average continuous 
power output (X), in kilowatts. The curve is valid for generators between 18 to 
23,600 kW. The curve includes all costs associated with the acquisition, transpor- 
tation, and installation of single-unit generators. 

To convert from kilovolt amperes (kVA) demand to kilowatt (kW) power output, es- 
timate power factor (PF). This may vary from 0.80 for electric motor circuits to 
1.00 for electric light circuits. The kilowatt power output is then determined by 
kVA X PF = kW. 

The portable power generation costs derived from the curves are a combination of 
the following costs:: 



[orizontal diesel 


Gas turbine 


(18 to 


(2,900 to 


2,900 kW) 


23,600 kW) 


21% 


21% 


st 20% 


20% 


58% 


59% 


1% 


- 



Installation Labor Cost 
Installation Materials Cost 
Purchased Equipment Cost 
Freight cost 

Installation is assumed to be half labor and half materials. 

The total diesel-powered portable power generation capital cost is 
(Y c DIESEL^ = 797.574(X) ' 876 and is distributed as follows: 

(L) Installation Labor Cost (Y L DIESEL^ = 167.491(X) 0,876 

(S) Installation Materials Cost (Y s DIESEL^ = 159. 514(X) ' 876 

(E) Purchased Equipment Cost (Y E djesel) = 470. 568 (X) ' 876 



114 

The total turbine-powered portable power generation capital cost is 
( Y C TURBINE^ = 2,251.219(X) 0,872 and is distributed as follows: 

(L) Installation Labor Cost (Y L turbine) = 472. 756 (X) * 872 

(S) Installation Materials Cost (Y s turbine^ = 450.244(X) * 872 

(E) Purchased Equipment Cost (Y E TURBINE) = 1328. 219 (X) * 872 

Power Output Determination For surface mine power output (kW), see Electrical Sys- 
tem (section 2.2.4.2.). For underground mine and mineral processing plant 
power demand (kVA), see Electrical System (sections 4.2.5.3. and 6.1.8.4. 
(IC 9143)). 

ADJUSTMENT FACTORS 

Power Rate If power is to be supplied by more than one unit, the total power out- 
put should be divided by the number of required units to obtain the power out- 
put per unit (X) needed for entering the curve. After the unit cost has been 
calculated, the cost must be multiplied by the total number of units used. 

Power Source If geography or economics necessitate multiple power sites to support 
mines and mineral processing plants, portable power cost should be estimated 
separately for each site using this section. 

Shift Adjustment Adjustment for the number of operating shifts is implicit in the 
choice of the average continuous power output. 

Economic Life The normal economic life for generators is 25,000 hr for units rated 
at 1,100-kW output or greater and ranges from 11,000 to 17,500 hr for units 
rated at less than 1,100-kW output. If the units are operated at standby 
rates, roughly 10 percent over capacity, the economic life would decrease by 
50%. If high-sulfur fuels are used, the economic life would be decreased by 
25%. 



115 



Surface Mining— Capital Costs 



100,000 



n 

a 

~o 
•a 



n 
•a 

c 
o 
n 

O 

JC 



to 
o 
o 



10,000 



1.000 



100 



10 







■=n 




i 


I ■ 1 


L_, .,_ 


























Diesel 

0.876 
Y c - 797.574(X) 

18 <X< 2,900 


























































































A,/ 


/ 
















































b^ 


































i 


€ 


y 


































r 
































/ 


/ 










































































r 






































s 




































/ 






























. y\. 


( 


/ 


/ 


y 




























<5 


f 


/ 


































A 


( 




































/ 
























■ ' i 










s 


/ 












Turbine 
Y c = 2,251.21 9(X)°* 872 






/ 


/ 


T 














y 


/ 




















2. 


9C 





< 

■ ■ 


;x< 


23,€ 

: 


OC 

: 


) 

— r 



10 



100 1.000 10,000 

POWER OUTPUT, kilowatts 

2.2.4.6. Portable power generation 



100,000 



116 

2.2. SURFACE MINING— CAPITAL COSTS 
2.2.4. MINE PLANT GENERAL OPERATIONS 
2.2.4.7. REPAIR SHOPS AND WAREHOUSES 

Repair shops and warehouses include buildings, equipment, floors, foundations, and 
aprons. Building costs are based on steel superstructure and concrete block exter- 
ior walls. Costs include all applicable equipment, and cover all types of surface 
mining operations and haulage. The buildings are based on weather requirements for 
the Denver, CO, area. 

BASE CURVE 

The total capital cost is based on a single cost curve having an area (X), in 
square meters of repair shop and warehouse space or having a production rate (T), 
in total metric tons of ore and waste per day. The curve is valid for areas of 150 
to 10,000 m 2 , or 1,000 to 400,000 mtpd, operating three shifts per day. The cost 
obtained from this curve assumes that these facilities will be used only for mining 
operations. If the mine and mineral processing plant are to share the same facili- 
ties, the user must determine, using a knowledge of the requirements, what can be 
jointly used and how much, if any, increase to the cost must be made for joint 
usage. 

If the space requirements are known, the capital cost estimate may be made directly 
by consulting the cost curve; if space requirements are not known, they can be es- 
timated from the following equation: 

Total square meters = 2, 703+0. 016 (T) 

where T = ore and waste mined, in metric tons per day. 

The capital cost derived from the curve is a combination of the following costs: 

Shops Warehouses 

Construction labor cost 36% 6% 

Construction supply cost 31% 5% 

Purchased equipment cost 22% - 

The total surface mine repair shops and warehouse facilities capital cost Is 
(^C SQUARE METERS^ = 447. 814 CX)-*-* 000 and is distributed as follows: 



!£ (Y L SHOPS-SQ M> = 161.213(X) 1 -000 
>st (Y S SHOPS-SQ M> = 138.822(X) 1 '000 
>st (Y E SHOPS-SO M> " 98. 519 (X) 1 ' 00° 



(L) Construction Labor Cosl 

(S) Construction Supply Co; 

(E) Purchased Equipment Cost (Yg SHOPS-SQ M- 

(L) Construction Labor Cost (Y L WAREHOUSES-SQ M> = 26.869 (X) 1 ' 000 

(S) Construction Supply Cost (Y s WAREHOUSES-SQ M> = 22.39KX) 1 ' 00° 



The total surface mine repair shops and warehouse facilities capital cost is: 
(Y C MTPD^ = 31,103.546(T)°' 373 and is distributed as follows: 



117 



(L) Construction Labor Cost (Y L SHOPS-MTPD^ = 11,197. 277(T) ' 373 
(S) Construction Supply Cost (Y s SHOPS-MTPD^ = 9,642.099(T) * 373 
(E) Purchased Equipment Cost (Y E SHOPS-MTPD^ = 6,842.780(T) 0#373 

(L) Construction Labor Cost (Y L WAREHOUSES-MTPD^ = 1,866. 213(T) ' 373 
(S) Construction Supply Cost (Ys WAREHOUSES-MTPD^ = 1*555. 177(T) 0,373 

ADJUSTMENT FACTORS 

Temperature Factor The buildings are based on temperature requirements for the 
Denver, CO, area. For milder areas multiply the costs obtained from the base 
curve by the following factor: 

Temperature factor (F T MILD^ = 0*94 

For more severe areas multiply the costs obtained from the base curve by the 
following factor: 

Temperature factor (F-j SEVERE ^ = 1*08 

Wind and Snow Load Factor The building are based on typical Denver, CO, area re- 
quirements for an equivalent combined wind and snow load of 20 lb/ft^. To 
adjust the costs for more severe conditions (greater than 40 lb/ft^), multi- 
ply the cost obtained from the base curve by the following factor: 

Wind and snow load factor (Fg SEVERE^ = 1»03 



118 



Surface Mining— Capital Costs 



10,000 



(0 
JO 

o 1,000 



0) 

c 
o 
tn 

o 

-C 



CO 

o 
o 



100 



10 





























































y 




















































* 


' 




















































y 






































/ 


















/' 
































































1.000 
Y c = 447.81 4(X) 

150 <X< 10,000 
















i iii 



100 1,000 

AREA, square meters 

2.2.4.7. a Repair shops and warehouses 



10,000 



119 



Surface Mining— Capital Costs 



10.000 



a) 
o 
~o 



w 

c 1.000 

o 

n 

3 
O 



in 
o 
o 



100 































































































































































































































































0.373 - 
Y C =31.103.546(X) 

1.000 <X< 400,000 
















III 1 III 



1.000 10.000 100,000 

ORE AND WASTE, metric tons per day 

2.2. 4.7. b Repair shops and warehouses 



1.000.000 



120 

2.2. SURFACE MINING— CAPITAL COSTS 
2.2.4. MINE PLANT GENERAL OPERATIONS 
2.2.4.8. STOCKPILE STORAGE FACILITIES 

A stockpile storage facility provides sufficient storage capacity for a material 
until it can be further processed. A storage facility may also provide adequate 
reserve material to dampen surges in the material supply. Examples of materials 
stockpiled are smelter flux, coal, and coarse ore. For this base curve, capital 
cost is correlated to the live storage capacity of the stockpile facility. Live 
storage capacity of a stockpile is normally about 25% of the total stockpile capa- 
city and 150% of the daily stockpile reclaim rate. The stockpile storage facility 
capital cost includes all costs associated with acquisition and installation of 
stockpiling conveyors, reclaim tunnels, reclaim feeders, and reclaim conveyors. 

BASE CURVE 

The total capital cost is based on a single cost curve having a live storage capa- 
city (X), in metric tons. The curve is valid for 3,000 to 300,000 mt, operating 
two shifts per day. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 13% 

Construction supply cost 36% 

Purchased equipment cost 51% 

A typical breakdown of the major cost components is 

Reclaim feeders 14% 

Stockpiling conveyor 23% 

Reclaim tunnels 31% 

Reclaim conveyors 32% 

The total stockpile storage facility capital cost is (Y c ) = 1,401. 013(X) ' 598 
and is distributed as follows: 



(L) Construction Labor Cost (Y L ) = 182. 132 (X) * 598 
(S) Construction Supply Cost (Y s ) = 504.365(X) ' 598 
(E) Purchased Equipment Cost (Y E ) = 714. 516 (X) 0, 598 



121 



10,000 



Surface Mining— Capital Costs 



0) 

o 

"o 

T3 



n 

§ 1,000 
to 

o 

SI 



o 

o 



100 





























































































































































~2 


/ 
























/ 


























/ 


/ 


























































0.598 
Y c = 1,401 .01 3(X) 

3,000 < X < 300,000 


III I III 



1,000 



10,000 100,000 

CAPACITY, metric tons live storage 



1,000,000 



2.2.4.8. Stockpile storage facilities 



122 

2.2. SURFACE MINING— CAPITAL COSTS 
2.2.4. MINE PLANT GENERAL OPERATIONS 
2.2.4.9. SURFACE BUILDINGS 

The cost curve for surface buildings covers the general support facilities for the 
mining operation, including change house, powder magazine, tool sheds, guard 
houses, fencing, etc. Buildings are furnished and are of concrete block construc- 
tion. The buildings are based on weather requirements for the Denver, CO, area. 
The installation is based on a three-shift mining operation. Total cost is based 
on the combined floor space, in square meters, for the included buildings assuming 
single-story construction. 

BASE CURVE 

The total capital cost is based on a single cost curve having a building area (X), 
in square meters of space or_ having a production rate (T), in total metric tons of 
ore and waste per day. The curve is valid for areas of 20 to 2,400 m 2 , or 14,000 
to 55,000 mtpd, operating three shifts per day. The costs obtained from this curve 
are based on the assumption that these facilities will be used only for mining op- 
erations. If the mine and mineral processing plant are to share the same facili- 
ties, the user must determine (using a knowledge of the requirements) what can be 
jointly used and apportion the resulting cost to the mine and plant. 

If the total number of needed square meters is not known, the following equation 
can be used to estimate the area required for surface buildings: 

Total square meters = 10.7+0.00616(T) 

where T = metric tons ore and waste mined per day. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 51% 

Construction supply cost 49% 

The total capital cost is (Y c SQUARE METERS^ = 23,587.146(X) * 422 and is dis- 
tributed as follows: 

(L) Construction Labor Cost (Y L SQUARE METERS^ = 12,029.444(X) ' 422 
(S) Construction Supply Cost (Y s SQUARE METERS^ = H, 557.70KX) ' 422 

The total capital cost is (Y c MTPD ) = 3, 417.367 (T) - 403 and is distributed as 

follows : 

(L) Construction Labor Cost (Y L MTPD^ = 1,742.857(T) * 403 
(S) Construction Supply Cost (Y s MTPD^ = 1,674. 51(T) ' 403 



123 

ADJUSTMENT FACTORS 

Shift Adjustment To adjust the capital cost for a different number of daily 

operating shifts, multiply the actual daily tonnage by the ratio of the base 
number of shifts (3) divided by the number of desired shifts. Then, use this 
modified production rate in place of actual daily tonnage in the preceding 
tonnage -square meter equation to obtain the adjusted building area. This 
factor need not be applied if actual building areas are known. 

Temperature Factor The buildings are based on temperature requirements for the 

Denver, CO, area. For more moderate areas multiply the costs obtained from the 
base curve by the following factor: 

Temperature factor (Fj MILD^ = 0*94 

For more severe areas multiply the costs obtained from the base curve by the 
following factor: 

Temperature factor (F-p SEVERE ^ = 1*08 

Wind and Snow Load Factor The buildings are based on typical Denver, CO. area re- 
quirements for an equivalent combined wind and snow load of 20 lb/ft^. To 
adjust the costs for more severe conditions (greater than 40 lb/ft^), multi- 
ply the costs by the following factor: 

Wind and snow load factor (Fg SEVERE^ = 1*03 






Surface Mining— Capita! Costs 



1,000 



0) 

V- 

o 
■o 



n 
•a 

c 

D 

n 
o 



in 
o 
o 



100 



10 





















































>* 


























































































































































































































Y < 


^"™ 


2; 

2C 


5,587. 

)<x< 


146(X 
. 2.40 


) u - 






i 



10 



100 1,000 

AREA, square meters 

2.2. 4.9. a Surface buildings 



10,000 






'"w' 




mm 



THE LIBRARY OF CI 

LC CATALOGING DATA SHEET No. 1-2* 



(For instructions, see Section 4 of CI P Publisher's Manual) 




" 3. Name of Publisher Appearing on the Title Page 

U.S. Bureau of Mines 



1 . Date Form Completed 



March 3, 1987 



f-g*- 



2. Form Completed by 

Alice Battle 



4. Name of In-House Editor 



NA 



(RUSH) 



(RUSH) 



Phone 



Phone 




5. Authors' Names Appearing on the Title Page 

Compiled by Staff, Bureau of Mines 



BUSH ) 



Birthdate 



6. Title and Subtitle Bureau of Mines ^„ £ 

Cost EstimatiflJ System Handbook, xmmm (In Two Parts) 1. 
Mining 



4* ***»£*■. J 



and - Surf -a 



7. If this is a translation from a foreign language, give original title: 

NA 



8. Give title(s) of any other English language edition(s) if different from this title: 

NA 



9. If this is a copublished book, give name of copublisher: 

NA 

>2. . /'"tft/d comprfses morie tti&fi onephysicof 

volume, the number of volumes planned is: NA 



lis is tI-i« galley 

1 for volume number: 



N A 



13. If title belongs to a series of monographs having a comprehensive title, and it will appear in the book, the series title is: 

Information Circular 



14. If the series is numbered, the number for this title is: 

15. Work is essentially a 



□ 



novel 



□ 



biography 



□ 



essays 



I — I textbook LJ other Scientific, report 

(specify) 



16. Primary audience for whom book is intended 

□ 



general 



I I biomedical field 

. . . . Mineral industry resea 

LJ children/ Lxl otherand production pers 



xh 

innel 



young adults (age level) 



(specify) 



1 ?. Primary subject of the books OR Precis of the book in detail. (Be as specific as possible, continuing on a separate sheet if necessary.) 



See abstract in manuscript 



18. The following information items are related for cataloging purposes. Use a single line for each ISBN involved, giving the rest of the 
information as fully as you can. 

ISBN (s) and FORMAT OR VOLUME NUMBER 



NA 



LC CARD NUMBER IF 
PREASSIGNED 

NA 



87-600163 



PRICE (specify if sold only as a set) 

NA 



19. Person and address to which CIP entry should be mailed 

Alice Battle, Branch of Editorial Services, U.S. Bureau of Mines 
4900 LaSalle Road, Avondale, Md 20782 



607-6 (rev 3/86) 



Use previous issues until exhausted. 



•Use Cataloging Data Sheet No. 3 for photo offset 
reprints. 



125 



Surface Mining— Capital Costs 



1,000 



01 

a 
"5 

T3 



n 
-o 

c 
o 
en 

o 

-C 



CO 

o 
o 



100 

























































Y c = 3,417.367(X)°' 403 
14,000 <X< 55,000 




I I I 



10,000 



100,000 



ORE AND WASTE, metric tons per day 
2.2.4.9.D Surface buildings 



126 

2.2. SURFACE MINING— CAPITAL COSTS 

2.2.4. MINE PLANT GENERAL OPERATIONS 

2. 2. A. 10.1. WATER AND DRAINAGE SYSTEM 
DRAINAGE SYSTEM 

The curve applies to the most common dewatering method, which consists of pumping 
water out of the mine. 

BASE CURVE 

The total capital cost is based on a single curve for a water-pumping volume (X), 
in cubic meters per day. The curve is valid for pumping volumes of 100 to 60,000 
m^/d, operating three shifts per day. The curve is predicated on an adjustable 
head of 110 m and an adjustable pumping distance of 1.18 km. This curve covers all 
costs associated with acquisition and installation of ditches, sumps, pumps, pipe 
lines, and fittings needed to drain the surface area around the mine. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 16% 

Construction supply cost 30% 

Purchased equipment cost 54% 

A typical breakdown of major cost components is 

Small Large 

(100 to (10,000 to 

10,000 m 3 /d) 60,000 m 3 /d) 

Pumps and motors • 56% 55% 

Pipe, valves, and fittings, 44% 45% 

The total capital cost is (Y c ) = 4,947.052(X)°« 426 and is distributed as 

follows: 

(L) Construction Labor Cost (Y L ) = 791.528(X)°*426 

(S) Construction Supply Cost (Y s ) = 1,492.216(X) * 426 

(E) Purchased Equipment Cost (Y E ) = 2,685.988(X) ' 426 

ADJUSTMENT FACTORS 

Pumping Head Factor The capital cost curve is based on 100-m static head (lift) and 

10-m friction head. This friction head applies to a 1.18-km standard steel 

pipe line. For actual heads (H), multiply the cost obtained from the base 
curve by the following factor: 

Pumping head factor (F p ) = 0. 65+[0. 00318(H) ] 

where H = actual head (static, friction, velocity, and fitting), in 
meters. 



127 



For preliminary estimates of H, add to the actual static head (lift) 8 m for 
each kilometer of new steel pipe line through which pumping is done. 

For accurate determinations of H, add to the actual static head the sum of 
friction, velocity, and fitting heads obtained from hydraulics handbooks for 
actual pipe quality, pipe diameter, and pipe line pumping distance. 

Pumping Distance Factor The capital cost curve is based on a 1.18-km pumping dis- 
tance (0.18 km in the mine and 1 km outside). For actual distances, multiply 
the cost obtained from the base curve by the following factor: 

Pumping distance factor (F D ) = 0.490+0. 431(D) 
where D = actual pumping distance, in kilometers. 



128 



Surface Mining— Capital Costs 



1,000 



n 
JO 

o 
-a 



91 

w 

a 

o 



CO 

o 

o 



10 



































































































































































































































> 














































\ 


c~ 


4 

1C 


.947.C 
0<X 


)52(X) 

< 6,0 


v.- 

00 


I 



100 1,000 10,000 

WATER, cubic meters per day 

2.2.4.10.1. Water and drainage system 
DRAINAGE SYSTEM 



100,000 



129 

2.2. SURFACE MINING—CAPITAL COSTS 

2.2.4. MINE PLANT GENERAL OPERATIONS 

2.2.4.10.2. WATER AND DRAINAGE SYSTEM 

WATER SUPPLY SYSTEM (MAKEUP WATER) 

Water is supplied from aquifers or surface sources to surface mines for dust con- 
trol on haulage roads and for equipment cooling. The water supply system capital 
cost for a surface mine (and /or an adjoining mineral processing plant (section 
6.1.8.14., IC 9143) is based on daily water consumption. 

If total daily volume (mine and mineral processing makeup water) is known, the man- 
ual user should enter this volume in the equation given below (unless the processing 
plant is supplied with water from an independent source). The total cost may be al- 
lotted as follows^ : 

a) 9% to section 2.2.4.10.2. (surface mine). 

b) 91% to section 6.1.8.14. (mineral processing plant IC 9143). 

To estimate mine water demand, multiply the daily mine capacity (ore and waste) by 
0.07. The 0.07 factor is the approximate number of cubic meters of water required 
per metric ton mined. 

BASE CURVE 

The total capital cost is based on a single curve for a water volume (X), in cubic 
meters per day and is valid for volumes of 1,000 to 150,000 m^/d, operating three 
shifts per day. The curve is predicated on an average pumping head of 291 m, and 
pumping distances ranging from 3 to 53 km, and consists of wells, storage tanks, 
pipelines, distribution piping, pumps, and fittings. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 54% 

Construction supply cost 13% 

Purchased equipment cost 32% 

Freight cost 1% 

A typical breakdown of equipment major cost components is: 

Pipe line 58% 

Pumps 26% 

Storage tanks 16% 

1 Percentages derived from U.S. Bureau of Mines IC 8285 dealing with water con- 
sumption for U.S. mines and mineral processing plants. Different percentages may 
be obtained if an actual breakdown of water consumption for the mine and mineral 
processing plants is known. 



130 

The total capital cost is (Y c ) = 848.677 (X) * 893 and is distributed as follows: 

(L) Construction Labor Cost (Y L ) = 458.286 (X) * 893 

(S) Construction Supply Cost (Y s ) = 110.328(X) ' 893 

(E) Purchased Equipment Cost (Y E ) = 280.063(X) ' 893 

ADJUSTMENT FACTORS 

Pumping Distance Factor To adjust the capital cost for the actual pumping dis- 
tance, multiply the cost obtained from the base curve by the following factor: 

Pumping distance factor (F D ) - 0.030+[12. 516(D) (X)" * 549 ] 
where D = actual distance, in meters, 

and X = daily volume, in cubic meters per day. 



131 



Surface Mining— Capital Costs 



100,000 



^O 

o 10,000 



c 

D 
(0 

3 
O 



fc 1 -ooo 

o 

o 



100 



























































































































































/ 




























/ 


























/ 
















































/ 




























/ 


























/ 




























/ 












































0.893 
Y c = 848.677(X) 

1,000 <X< 150,000 




















III I III 



1,000 10,000 100,000 

WATER, cubic meters per day 

2.2.4.10.2. Water and drainage system 
WATER SUPPLY SYSTEM (MAKEUP WATER) 



1,000,000 



132 

2.2. SURFACE MINING— CAPITAL COSTS 

2.2.6. INFRASTRUCTURE 

2.2.6.1.1. ACCESS ROADS 
CLEARING 

The total cost per kilometer is the sum of two separate cost curves (labor and 
equipment operation) having a roadway width (X), in meters. The curves are valid 
for widths between 3 and 30 m, operating one shift per day. This cost is multi- 
plied by the total kilometers to obtain the capital cost. Each curve includes all 
of the daily operating and maintenance costs associated with clearing for access 
roads. Supplies have not been considered in the clearing costs because it is 
assumed that cleared brush or timber would be buried under the excavation waste; 
thus, supplies of fuel oil for burning the clearing slash are not required. 

BASE CURVE 

The curves are based on estimated costs for clearing medium growth on terrain with 
a side slope of 25%. Medium growth varies from heavy brush to one tree, 0.33 m in 
diameter, per 40 m^. 

(L) Labor Operating Cost (Y L ) = 1,135.467(X)°* 711 

The operating labor costs are distributed as follows: 

Direct labor 86% 

Maintenance labor 14% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Dozer operator 12% $16.33 

Wheel-loader operator 12% 16.33 

Flatbed-truck driver 12% 15.89 

General laborer 64% 13.86 

The average wage for labor is $14.63 per worker-hour (including burden and 
average shift differential). 

(E) Equipment Operating Cost (Y E ) = 467.945(X) 0, 711 

The equipment operating cost consists of 35% for repair parts, 53% for fuel and 
lubrication, and 12% for tires. 

The equipment operation curve consists of 

Dozer crawler 31% 

Wheel loader 47% 

Flatbed truck 12% 

Pickup truck 9% 

Chainsaws 1% 



133 

The equipment operating cost distribution is 

Repair parts Fuel and lube Tires 

Dozer crawler 52% 48% 

Wheel loader 36% 43% 21% 

Flatbed truck 9% 80% 11% 

Pickup truck 8% 90% 2% 

Chainsaws 39% 61% 

ADJUSTMENT FACTORS 

Brush Factor For light clearing conditions where the growth consists mainly of 
brush and small trees, multiply the curves by the following factors 

Brush factor (Fg LIGHT^ = O* 2 ^ 

For heavy clearing conditions, defined as when clearing a dense growth of trees 
(diameter of the trees commonly exceeding 0.33 m), multiply the curves by the 
following factor: 

Brush factor (Fg DENSE^ = 1*75 

Side Slope Factor For clearing on terrain with side slopes other than 20% to 30% 
multiply the curves by the following factors: 

For clearing on terrain with side slopes of 0% to 20%, 

Side slope factor (Fg o%-20%^ = 0.8 
For clearing on terrain with side slopes of 30% to 50%, 

Side slope factor (Fg 30%-50%^ = 1*8 
For clearing on terrain with side slopes of 50% to 100%, 

Side slope factor (F s 5Q%-100% ) = 2 ' 5 



134 

Burning Equation If fuel oil (for burning slash) or other supplies, such ascables 
and chokers, are used, add the following supply cost equation to the total cost 
per km. The total cost per kilometer for supplies is for a roadway of width 
(X), in meters, varying in width from 3 to 30 m. 

(S) Supply Operating Cost (Y s BURNING^" 269.796[ 0.100(X) J-0-0303 

This cost is multiplied by the total km, valid for values between 3.33 to 
3,333.33 km, to obtain the capital cost. 

For clearing operations from 1 to 500 ha (roadway width in meters multiplied by 
roadway length in meters multiplied by 0.0001), the supplies consist of 78% for 
fuel oil and 22% for tools, cables, and chokers. For clearing operations of 
500 to 1,000 ha, supplies consist of 83% for fuel oil (for burning wood and 
scrub) and 17% for tools, cables, and chokers. 

Equipment Factor Where it is necessary to purchase equipment, or have a subcontrac- 
tor perform the work, multiply the equipment operation value by the following 
applicable factor in order to obtain the total value of equipment expense for 
ownership and operation: 

Shifts per day 1 2 3 

Factor 1.91 1.68 1.61 

Subcontractor Factor If a subcontractor is used, to compensate for the subcontrac- 
tor's markup, multiply the costs by the following factors: 

Labor factor (F^) =1.5 

Supply factor (F s ) = 1.2 

Equipment operation factor (Fj?) =1.2 



135 



Surface Mining— Capital Costs 



100,000 



01 

c 
a 



o 

E 

Q 

* 10,000 

o 
a. 

n 

a 

"5 

■a 



en 
O 
o 



1,000 



" " T" I 1 














"" Y, = 1,135.467(X)°* 711 
_ L 0.711 
Y E = 467.945(X) 

3 < X < 30 


























































/ 


















*/ 


' 
















^py— 






















\ ^^" 












^ 


& 


i> 


OY^-» 































10 
WIDTH, meters 



100 



2.2.6.1.1. Access roads 
CLEARING 



136 

2.2. SURFACE MINING—CAPITAL COSTS 

2.2.6. INFRASTRUCTURE 

2.2.6.1.2. ACCESS ROADS 

DRILL AND BLAST 

The total cost per kilometer is the sum of three separate cost curves (labor, sup= 
plies, and equipment operation) for a roadway width (X) , in meters. The curves are 
valid for widths between 3 and 30 m, operating one shift per day. This cost is 
multiplied by the total kilometers to obtain the capital cost. Each curve includes 
all of the daily operating and maintenance costs associated with drilling and 
blasting for access roads. 

BASE CURVE 

The curves are based on estimated costs for drilling and blasting a cut with a sin- 
gle ditch. The terrain has a side slope of 0% to 20%, and the cut contains 50% 
rock. 

(L) Labor Operating Cost (Y L ) = 9 , 633.822(X) * 496 

The operating labor costs are distributed as follows: 

Direct labor 79% 

Maintenance labor 21% 

The direct labor costs consist of the following typical range of personnel: 



Av salary 


per hour 


(base 


rate ) 


$16. 


78 


17. 


23 


13. 


86 


16. 


33 


14. 


56 


15. 


89 



Air-track driller 33% 

Compressor operator 17% 

Chuck tender 2 7% 

Powderman 8% 

Powderman helper 7% 

Flatbed-truck driver 8% 

The average wage for labor is $15.68 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 7 , 247. 524(X) - 644 

The supply cost consists of 79% blasting supplies and 21% drilling supplies. 
Drilling supplies consist of percussion drill bits, rods, striking bars, and 
couplings; blasting supplies consist of dynamite, ANFO, electric blasting caps, 
and connecting wire. 

(E) Equipment Operating Cost (Y E ) = 4, 109.384(X) °- 496 

The equipment operation curve consists of 51% for repair parts, 48% for fuel 
and lubrication, and 1% for tires. 

The equipment operation curve consists of 



137 

Air-track drills 33% 

Portable compressors 55% 

Flatbed truck 7% 

Pickup truck 5% 

The equipment operating cost distribution is: 

Repair parts Fuel & lube Tires 

Air-track drills 93% 7% 

Portable compressors 34% 65% 1% 

Flatbed truck 9% 80% 11% 

Pickup truck 8% 90% 2% 

ADJUSTMENT FACTORS 

Rock Factor For drilling and blasting cuts that contain other than 50% rock, multi- 
ply the curves by the following factors: 

For drilling and blasting cuts containing 25% rock, 

Rock factor (F R 25%) = 0*60 
For drilling and blasting cuts containing 100% rock, 

Rock factor (F R 100%) = l '^° 

Side Slope Factor For terrain with side slopes of 0% to 20% which require drilling 
and blasting for two ditches and for providing material for a minimum fill, the 
base costs should be used without any adjustments. With side slopes other than 
0% to 20% multiply the cost obtained from the curves by the following factors: 

For clearing on terrain with side slopes of 20% to 50%, 

Side slope factor (Fg 20%-50%^ = ^'^ 
For claering on terrain with side slopes of 50% to 100%, 

Side slope factor (F s 50%-100% ) = 3 -° 

Equipment Factor Where it is necessary to purchase equipment, or have a subcontrac- 
tor perform the work, multiply the equipment operation value by the following 
applicable factor in order to obtain the total value of equipment expense for 
ownership and operation: 

Shifts per day 1 2 3 

Factor 2.12 1.84 1.75 

Subcontractor Factor If a subcontractor is used, to compensate for the subcontrac- 
tor's markup, multiply the costs by the following factors: 

Labor factor (F L ) = 1.50 

Supply factor (F g ) = 1.20 

Equipment operation factor (Fg) = 1.20 



138 



Surface Mining— Capital Costs 



100,000 



C 



E 
_o 



fe 10,000 



v. 

a 



o 
■a 



CO 

o 



1,000 



































s 
















{ 


^S 


r 


















^\& 


















$■ 


r o9 e 


o 












^A 


W 














^ 










































Y L = 9,633.822(X)°' 496 " 

, ,0.644 
Y S = 7,247.524(X) 

0.496 ,_ 
Y E =4,109.384(X) 

3 <X< 30 




























I III 



10 
WIDTH, meters 

2.2.6.1.2. Access roads 
DRILL AND BLAST 



100 



139 
2.2. SURFACE MINING - CAPITAL COSTS 
2.2.6. INFRASTRUCTURE 
2.2.6.1.3. ACCESS ROADS - EXCAVATION 

The total cost per kilometer is the sum of two separate cost curves (labor and 
equipment operation) having a roadway width (X), in meters. The curves are valid 
for widths between 3 and 30 m, operating one shift per day. This cost is multi- 
plied by the total kilometers to obtain the capital cost. Each curve includes all 
of the daily operating and maintenance costs associated with excavation for access 
roads. 

BASE CURVES 

The curves are based on a dozer excavation operation that is working on terrain 
with a side slope of 25%, side-casting from cuts or ditches to a 30-cm fill or to 
waste. The material to be excavated is either blasted rock or a common con- 
glomerate that presents some difficulty in cutting and drifting. 

(L) Labor Operating Cost (Y L ) = 29.843(X) 1 * 870 

The operating labor costs are distributed as follows: 

Direct labor 60% 

Maintenance labor 40% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Dozer operator 60% $16.33 

Grader operator 20% 16.33 

Water-truck driver 20% 15.89 

The average wage for labor is $16.24 per worker-hour (including burden and 
average shift differential). 

(E) Equipment Operating Cost (Y E ) = 27.128CX) 1,870 

The equipment operation curve consists of 46% for repair parts, 50% for fuel 
and lubrication, and 4% for tires. 

The equipment operation curve consists of 

Dozer crawlers 47% 

Dozer-ripper crawler 25% 

Motor grader 15% 

Water truck 9% 

Pickup truck 4% 



49% 


- 


47% 


- 


41% 


14% 


55% 


16% 


90% 


2% 



140 

The equipment operating cost distribution Is 

Repair parts Fuel and lube Tires 

Dozer crawlers 51% 

Dozer ripper crawler 53% 

Motor grader 45% 

Water truck 29% 

Pickup truck 8% 

ADJUSTMENT FACTORS 

Side Slope Factor On terrain with a side slope other than 20% to 30% excavation 
costs can be determined by multiplying the costs obtained from the curves by 
the following factors: 

For clearing on terrain with side slopes of 0% to 20%, 

Side slope factor (F ss q%-20%) = [0.8(S) ]0.600(W) ' 756 
where S = side slope [defined as 1+Cpercent slope/100)], 
and W = roadway width, in meters. 

For clearing on terrain with side slopes of 30 to 100 percent, 

Side slope factor (F ss 30-100%> = [0.8(S) ]3.958(W)0-087 
where: 

S = side slope [defined as l+(percent slope/100)], 
and W = roadway width, in meters. 

Material Factor For excavation of materials that are easy to cut and drift, 
multiply the costs obtained from the curves by the following factor: 

Material factor (F M EASY^ = 0*75 

For excavation of extremely wet and sticky material, multiply the curves by the 
following factor: 

Material factor (F^ DIFFICULT ^ = 1*33 

Equipment Factor Where it is necessary to purchase equipment, or have a subcontrac- 
tor perform the work, multiply the equipment operation cost obtained from the 
curve by the following applicable factor in order to obtain the total value of 
equipment expense for ownership and operation: 

Shifts per day 1 2 3 

Factor 1.94 1.71 1.63 

Subcontractor Factor If a subcontractor is used, to compensate for the subcontrac- 
tor's markup, multiply the costs obtained from the curves by the following 
factors: 

Labor factor (F L ) =1.5 

Equipment operation factor (F E ) =1.2 



141 



Surface Mining— Capital Costs 



100,000 



C 
4> 



o 10,000 



(D 

a. 
to 

L. 

"o 



ID 
O 
O 



1,000 



100 































































































y 




















// 


















// 


/ 




















/ 


s 














s< 


£ 

5 


/ / * 

// <? 


















p v 














/ 


'/<£ 
















// 


/<^ 
















/I 


// 








1.870 
Y L = 29.843(X) 

, J- 870 
Y E = 27.1 28(X) 

3 <X< 30 




;> 
























i iii 



10 



100 



WIDTH, meters 



2.2.6.1.3. Access roads 
EXCAVATION 



142 

2.2. SURFACE MINING— CAPITAL COSTS 

2.2.6. INFRASTRUCTURE 

2.2.6.1.4. ACCESS ROADS 

GRAVEL SURFACING 



The total cost per kilometer is the sum of three separate cost curves (labor, sup- 
plies, and equipment operation) for a roadway width (X), in meters. The curves are 
valid for widths between 3 and 30 m, operating one shift per day. This cost is 
multiplied by the total kilometers to obtain the capital cost. Each curve includes 
all of the daily operating and maintenance costs associated with gravel surfacing 
of access roads. 



BASE CURVE 

The curves are based on costs for preparing a road subbase, spreading surfacing 
material on the roadway, and compacting the surfacing material to a depth of 0.20 
m. The surfacing material is delivered to the job site in suppliers' trucks. 

(L) Labor Operating Cost (Y L ) = 293.304(X) ' 667 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



83% 
17% 



The direct labor costs consist of the following typical range of personnel: 

Av salary 
per hour 
(base rate) 



Grader operator 21% 

Roller operator 21% 

Dumpman 18% 

Grade checker 20% 

Water-truck driver 20% 



$16.33 
16.33 
13.86 
15.89 
15.89 



The average wage for labor is $15.66 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 6,880. 012(X) 1 * 006 

The supply cost consists of 100% road surfacing gravel (minus 1.9 cm). The 
gravel, delivered and dumped on the roadbed by suppliers' trucks, costs $13.76 
per metric ton. 

(E) Equipment Operating Cost (Y E ) = 135.032 (X)°* 667 

The equipment operation curve consists of 37% for repair parts, 51% for fuel 
and lubrication, and 12% for tires. 



143 
The equipment operation curve consists of 

Motor grader 42% 

Rubber-tired, 

self-propelled roller 19% 

Water truck 26% 

Pickup truck 13% 

The equipment operating cost distribution is 

Repair parts Fuel and lube Tires 

Motor grader 45% 41% 14% 

Rubber -tired, 

self-propelled roller 49% 40% 11% 

Water truck 29% 55% 16% 

Pickup truck 8% 90% 2% 

ADJUSTMENT FACTORS 

Equipment Factor Where it is necessary to purchase equipment, or have a subcontrac- 
tor perform the work, multiply the equipment operation cost obtained from the 
curve by the following applicable factor in order to obtain the total value of 
equipment expense for ownership and operation: 

Shifts per day 1 2 3 

Factor 2.05 1.79 1.70 

Subcontractor Factor If a subcontractor is used, to compensate for the subcontrac- 
tor's markup, multiply the costs obtained from the curves by the following 
factors: 

Labor factor (F L ) =1.5 

Supply factor (F s ) =1.2 

Equipment operation factor (Fg^ = ^*2 



144 



1,000,000 



c 100,000 



£ 
o 



10,000 


Q. 

n 

_o 
"o 



g 1,000 
o 



100 





i 


i 







Surface h 


/lining— C 


apita 


1 Co 


sts 


, ,0.667 
Y L = 293.304(X) 

, J. 006 
Y S =6,880.012(X) 

, .0.667 
Y E = 135.035(X) 

3 <X< 30 




































■s- 












-<&*%^ 










S\>\ 










''I 


f 






























































































































































y^- — 
















V 


opS-""^ 














.*.»*> n 


^e 


v-^ 
















£<^ 


*>^ 























































10 

WIDTH, meters 

2.2.6.1.4. Access roads 
GRAVEL SURFACING 



100 



145 

2.2. SURFACE MINING— CAPITAL COSTS 

2.2.6. INFRASTRUCTURE 

2.2.6.1.5. ACCESS ROADS 
PAVING 

The total cost per kilometer is the sum of three separate cost curves (labor, sup- 
plies, and equipment operation) for a roadway width (X), in meters. The curves are 
valid for widths between 3 and 30 m, operating one shift per day. This cost is 
multiplied by the total kilometers to obtain the capital cost. Each curve includes 
all of the daily operating and maintenance costs associated with paving of access 
roads. 

BASE CURVE 

The curves are based on a paving operation for laying and compacting hot-mix asphalt 
concrete (purchased locally from a hot-mix plant) to a depth of 5.1 cm. Costs to 
produce an appropriate paving road base are covered in section 2.2.6.1.4., Gravel 
Surfacing. 

(L) Labor Operating Cost (Y L ) = 117.710(X) 1 * 005 

The operating labor costs are distributed as follows: 

Direct labor 80% 

Maintenance labor 20% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Paver operator 13% $16.33 

Roller operator 26% 16.33 

General laborer 22% 13.86 

Rear-dump truck driver 39% 15.89 

The average wage for labor is $15.55 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 2,661.382(X) 1 * 005 

The supply cost consists of 100 percent asphalt concrete (minus 1.9-cm hot 
mix). The asphalt concrete, supplied by a local hot-mix plant, costs $26.37 
per metric ton. 

(E) Equipment Operating Cost (Y E ) = 68.436(X) 1 * 005 

The equipment operation curve consists of 32% for repair parts, 58% for fuel 
and lubrication, and 10% for tires. 

The equipment operation curve consists of 



146 

Asphalt paver 20% 

Rubber-tired, 

self-propelled roller 5% 

Steel-wheeled, 

tandem roller 5% 

Rear-dump trucks 64% 

Pickup truck 6% 

The equipment operating cost distribution is 

Repair parts Fuel and lube Tires 

Asphalt paver 68% 32% 

Rubber-tired, 

self-propelled roller 43% 51% 6% 

Steel -wheeled, 

tandem roller 50% 50% 

Rear-dump trucks 22% 63% 15% 

Pickup truck 8% 90% 2% 

ADJUSTMENT FACTORS 

Supply Factor The supplies cost should be adjusted for changes in the base asphalt- 
concrete price. 

Equipment Factor Where it is necessary to purchase equipment, or have a subcontrac- 
tor perform the work, multiply the equipment operation cost obtained from the 
curve by the following applicable factor in order to obtain the total value of 
equipment expense for ownership and operation: 

Shifts per day 1 2 3 

Factor 1.44 1.33 1.29 

Subcontractor Factor If a subcontractor is used, to compensate for the sub-contrac- 
tor's markup, multiply the costs obtained from the curves by the following 
factors: 

Labor factor (FjO =1.5 

Supply factor (F s ) =1.2 

Equipment operation factor (F E ) = 1.2 






147 



Surface Mining— Capital Costs 



100,000 



c 
© 



© 

a 
n 
o 
"o 

T3 



o 
o 



10,000 



1,000 



100 















s 
























































f 


t^ 
















y\ 






















































































s 














v< 


$ 
















y 


'A 


a 


; 


, J. 005 
Y L = 117.710(X) 

Y s = 2.661. 382(X) " 

. J.005 






& 


fy 


• 






s 




















T E 


3 <X 


< 3 








10 
WIDTH, meters 



100 



2.2.6.1.5. Access roads 
PAVING 



148 

2.2. SURFACE MINING— CAPITAL COSTS 

2.2.6. INFRASTRUCTURE 

2.2.6.2. MAIN POWER LINES 



If power is to be obtained from a local power company, it is generally necessary to 
construct new facilities to connect the mine site to the existing power line net- 
work. This cost is usually borne by the mine company that desires to receive the 
service. For shorter distances and lower maximum power loads this may simply en- 
tail extending existing, medium voltage (13-24 kV) distribution lines. To satisfy 
greater loads over longer distances, however, it is necessary to construct higher 
voltage (115 kV) transmission lines as well as substations dedicated to serve the 
mine solely. The following tablulation will aid the evaluator in determining the 
appropriateness of the various options to his particular case. 

Main power line distribution 





Load 


Maximum distribution line length, km 




Case 


Range(MV-A) 


24 kV 


13 kV 


Substation costs 


1 


2- 4 


105-52 


38-19 


$ 


2 


4- 8 


52-26 


19-10 


95,000 


3 


8-12 


26-18 


10- 6 


289,000 


4 


12-20 


18-10 



6-4 



630,000 


5 


20 


630,000 



^At greater than 20 MV*A it is advisable to have the main substation at the 
mine site, thus only transmission lines are considered. 

Note — MV'A(million volt amperes) = lOOOkW; KV*A(thousand volt amperes) = kW 
Both MV*A and KV'A are commonly used in the power generation industry to desig- 
nate power demand. 

LINE COSTS: 

Transmission lines $59, 000/kilometer 
Distribution lines $42 , 000/kilometer 

It is important to understand that there is an inverse relationship between MV*A 
and maximum distribution line distances. Thus, in case 2, at 24 kV.A, the first or 
lowest load figure (4 MV'A) corresponds to the maximum distance figure (52 km 
and the highest load to the lowest distance figure. 

It is also important to be aware of a few underlying assumptions regarding the five 
separate cases. Case one shows the power requirement range in which it is likely 
that existing distribution lines could supply the needed power. Thus there is no 
substation expense. The second and third cases assume that minor and major modifi- 
cations of an existing substation will be required, respectively. They also assume 
that new line needed will originate from that modified substation. For cases 4 and 
5 the large power requirements necessitate the construction of a completely new, 
dedicated substation. This facility will thus have to be fed by extending an 
existing high-voltage transmission line. In the instance of case 4 the site of the 
substation is as near the existing transmission line network as practicable; for 
case 5 the substation is assumed to be at the mine site. 



149 

The costs contained in this section assume that the power company that will be 
supplying the power will design and construct the line. Principal costs categories 
included are right-of-way purchase and clearing, access road construction, line and 
substation construction, permitting, and preconstruction design. 

The procedure for determining the system cost and requirements are as follows: 

(1) Estimate the maximum power demand that the mine will require. If not avail- 
able, an estimate of this value may be made by the techniques contained in the 
appropriate mine and beneficiation electrical system sections contained in this 
report. It is recommended that, for estimating purposes, horsepower and kW (or 
KV*~ A) be considered to be equivalent. Motor efficiencies as well as other 
system power losses generally account for much of the difference between the two 
units. 

(2) Contact the probable power supplier to determine the "nearest useable 
source," or likeliest point from which power may be obtained. Depending upon pres- 
ent loading within the system this may or may not be the nearest transmission or 
distribution line. 

(3) Calculate the actual maximum distribution line length on the basis of the 
projected load using the following equations: 

24-kV load — Maximum distribution line distance in km = 210/ (P) 

13-kV load — Maximum distribution line distance, in km = 77 /(P) 
where P = power requirements, in MV'A. 

(4) Determine distribution line costs by multiplying the lesser of either the 
total length of line required or the maximum length of distribution line as calcu- 
lated in step 3, by line cost per kilometer ($42,000). 

(5) Estimate the transmission line cost by multiplying the remaining length of 
line needed by transmission line cost per kilometer ($59,000). Note that for 
greater than 20 MV'A it is recommended that transmission lines be installed for 
the entire distance. 

(6) Based on MV'A, determine a substation cost from the previous tablulation 
and add this to the line costs already determined. The combination of line and 
substation costs is the total main power line cost. 

BASE CURVE 

System costs have been graphed for three different line distances over the load- 
range (X) of 2 to 40 MV'A. These curves are included to aid the manual user that 
is interested in a very preliminary cost and desires to avoid the procedure out- 
lined above for a more detailed cost determination. 

Freight charges from the east coast manufacturing plant to Denver, CO, for the 
major purchased equipment has been determined to be: 

Transformer, 32 mt $7,500 

Oil breaker - 3 at 13 mt each $9,600 

All other equipment and materials are considered to be locally available in Denver, 
CO. 

The total capital cost is based on single curves having power loads (X), in mega- 
volt amperes. The curves are valid for power loads of 2 to 40 MV'A. 



150 

The capital cost derived from the curve is a combination of the following costs: 

Small Large 

(2 to (20 to 

20 MV-A) 40 MV'A) 
Construction labor cost 50% 47% 

Construction supply cost 50% 37% 

Purchased equipment cost - 16% 

The total 10-km main powerline capital cost is 

( Y C 10 KM LINE) = 207,826.608(X) ' 563 and is distributed as follows: 

(L) Construction labor cost (Y L kj KM-SMALL) = 103,913.304(X) * 563 
(S) Construction supply cost (Ys io KM-SMALl) = 103,913.304(X) * 563 

(L) Construction labor cost (Y L 10 kM-LARGe) = 97,678.506(X) * 563 
(S) Construction supply cost (Y s 10 KM-LARGE) = 76,895.844(X) * 563 
(E) Purchased equipment cost (Y E kj KM-LARGe) = 33,252.257 (X) * 563 

The total 25-km main powerline capital cost is 

< Y C 25 KM LINE) = 644,990.250(X) 0,370 and is distributed as follows: 

(L) Construction labor cost (Y L 2 5 KM-SMALL) = 322,495.125(X) 0,370 
(S) Construction supply cost (Ys 25 KM-SMALL) = 322,495.125(X) * 370 

(L) Construction labor cost (Y L 2 5 KM-LARGe) = 303,145.418(X) 0,370 
(S) Construction supply cost (Y s 2 5 KM-LARGe) = 238,646.392(X) ' 370 
(E) Purchased equipment cost (Y E 2 5 KM-LARGe) = 103,198.440(X) * 370 

The total 50-km main powerline capital cost is 

(Y C 50 KM LINE) = 1,526, 363. 387 (X) ' 278 and is distributed as follows: 

(L) Construction Labor cost (Y L 50 KM-SMALL) = 763,181.694(X) * 278 
(S) Construction supply cost (Y s 50 KM-SMALL) = 763,181. 694(X) 0,278 

(L) Construction labor cost (Y L 50 kM-LARGe) = 717,390.792(X) ' 278 
(S) Construction supply cost (Y s 50 KM-LARGE) = 564,754.453(X) ' 278 
(E) Purchased equipment cost (Y E 5 q KM-LARGe) = 244,218.142(X) * 278 



151 



Surface Mining— Capital Costs 



10.000 



0) 

o 
"5 



w 
•o 

c 
o 
w 

o 



w 

c 
o 



1,000 



100 



































































5< 


j \cro 


\\t 


\®^^ 














1 


5^- 


i* 


j^^"" 












^^^ 




:>^ 


<$*/ 
















s' 










\&/ 


10 km line .563 
Y c = 207,826.608(X) 

25 km line q 370 
Y c = 644,990.250(X) 

FkO km lin*» 


























Y < 


: = 1.5 
2 


26,363.3 
< x 1 ' 


87(X 
\0 


U.2, 
) 


'B 



10 
POWER LOAD, megavolt amperes 

2.2.6.2. Main power lines 



100 



152 

2.2. SURFACE MINING—CAPITAL COSTS 

2.2.6. INFRASTRUCTURE 

2.2.6.3. TOWNSITE 



The following housing costs are for a typical average quality park based on using 
trailers or manufactured 'mobile home 1 housing containing between 150 and 200 
units. Costs are quoted per individual housing unit. Costs are factored by using 
the Bureau of Labor Statistics Industrial Materials Cost Index. Site costs do not 
include land site acquisition, construction of utility trunk lines to the site, or 
a wastewater treatment plant. Wastewater disposal uses a septic tank and drain 
field; however, transportation and setup costs to areas within 100 miles of Denver, 
CO, are included. 

TYPICAL AVERAGE SITE COSTS FOR FAMILY OR BACHELOR UNIT 



Family 



Bachelor 



Site preparation (typical avg. area 410 m 2 ) 

Streets (7.9- to 9.8-m wide, 7.6-cm asphalt or 7.5-cm 

gravel edged or curbed) 

Patios and walks 

Septic tank, includes drain field 

Water, connected to unit 

Gas, low-pressure, connected 

Electrical, 80- to 150-A connected service to each 

unit 

Office, recreation, laundry 

Total 



$1,050 

810 
610 
1,360 
550 
310 

890 
1,250 



$320 

270 
200 
750 
550 
310 

890 
1,250 



6,830 



4,540 



The following adjustment factors should be applied to the total typical average 
site cost where either quality or quantity differs. 

Site preparation adjustment multipliers to total typical average site cost are 
as follows: 



Quality 
description 

Low (300 nrVspace) 



Average (410 m^/space) . . . . 



Good (520 m 2 /space) 



Quality 






factor 


Quantity 


Factor 


0.70 


40- 80 


1.07 




80-125 


1.00 




150-250 


.92 


1.00 


50-125 


1.10 




150-200 


1.00 




250-300 


.95 


1.30 


50-150 


1.10 




175-200 


1.00 




250-350 


.97 



153 

In addition, the following accessories may also be required: 

Skirting at base of trailer $620.00 

Landing and steps 360.00 

Canopies over landings 550.00 

Air conditioning — using existing heater 840.00 

HOUSING UNITS 

Family Units — With living, dining, kitchen, bath, and sleeping facilities for 
two adults and two to four children. Cost is for typical average quality. 

Single-wide (4.27 by 19.50 m) $15,400 

Double-wide (7.31 by 14.63 m) 26,400 

Quality adjustments to the singleand double-wide basic costs are made by multi- 
plying the above housing unit average quality costs by the following factors: 

Low quality: 

Single wide 1. 12 

Double-wide 1.16 

Average quality: 

Single wide 0.90 

Double-wide 0.87 

Excellent quality: 

single wide 1.25 

double-wide 1.34 

Quantity adjustments — For quantities greater than 10 units, decrease overall 
costs by 10%. 

Snowload adjustment — For areas of heavy snowfall, increase basic unit costs 5% 
for increased roof support design. 

Bachelor Units — Consisting of single-person motel-style rooms with a kitchen 
and dining room. Rooms share a centrally located restroom and shower facil- 
ity. Cost is for typical average quality. 

Bachelor unit $15,000 

Number of persons adjustment — Per person cost is based on housing 400 person- 
nel. Lodging capital costs for greater than 500 people, decrease costs by 10%. 
Increase costs by 15% for less than 300 and 20% for less than 200. 

PRIMARY UTILITIES 

Electrical, cost per linear meter: 

Main overhead electric powerlines $26.32 

Lateral overhead lines 8.25 

Water, cost per linear meter: 

Main, 15.24-cm plastic (add or deduct 

$5.75 per 2.54-cm diam.) $35.80 

Lateral, 2.54-cm 17.22 



154 

2.2. SURFACE MINING— CAPITAL COSTS 

2.2.6. INFRASTRUCTURE 

2.2.6.4.1. WASTEWATER TREATMENT 
CLARIFICATION 

Clarification capital cost is for the acquisition and installation of equipment for 
water clarification and softening by precipitation and /or coagulation. The all 
metal solids -contact clarifier combines into one operation — quick, mixing, floccula- 
tion, clarification, and sludge thickening. The unit will selectively or simultan- 
eously remove turbidity, color, organic matter, manganese, iron, hardness, alkalin- 
ity, taste, and odor. The cost curve is based on clarifiers ranging in diameter 
from 2.74 to 45.72 m (cross-sectional area ranging from 5.9 to 1,642 m^). 

BASE CURVES 

Total cost is based on a single cost curve having a tank diameter of (X) in meters. 
The curve includes all costs associated with acquisition and installation of 
concrete pad, clarifier structure, and control-monitor equipment for sludge level 
and sludge density control. 

The total clarification capital cost derived from the curve is a combination of the 
following costs: 

Construction labor cost 19% 

Construction supply cost 5% 

Purchased equipment cost 76% 

The total clarification capital cost is (Y c ) = 15,631.070(X) * 991 and is distri- 
buted as follows: 



(L) Construction Labor Cost (Y L ) = 2,969. 910(X) * 991 
(S) Construction Supply Cost (Y s ) = 781.550(X) * 991 
(E) Purchased Equipment Cost (Y E ) = 11,879. 610(X) ' 991 



Note — Sizing of clarifier is based on one principal parameter — rise rate — the ver- 
tical velocity of the stream through the clarifier. If the diameter or cross- 
sectional area of the clarifier is unknown, and the feed flow rate is known and the 
rise rate is assumed to be 0.015 m/min, then the diameter (D), or equivalent cross- 
sectional area, of the clarifier can be estimated with the equation: 

Clarifier diameter (D) = 1.128[ (Q)/(R) ] °* 500 

where R = rise rate, in meters per minute, 

and Q = design flow rate, in cubic meters per minute. 



155 



1,000 



Surface Mining— Capital Costs 



0) 
"5 



(0 

§ 100 

(0 

3 

o 

-C 



CO 

o 
o 



10 



































/ 
















/ 
















/ 


/ 












/ 


/ 


/ 














































/ 


/ 
































0.991 
Y c = 1 5,631. 070(X) 

2.74 < X < 45.72 












I I I 



10 
TANK DIAMETER, meters 



100 



2.2.6.4.1. Wastewater treatment 
CLARIFICATION 



156 

2.2. SURFACE MINING— CAPITAL COSTS 

2.2.6. INFRASTRUCTURE 

2.2.6.4.2. WASTE WATER TREATMENT 
NEUTRALIZATION 

The Environmental Protection Agency's publication EPA-600/2-82-00/d "Treatability 
Manual, Vol. IV, Cost Estimating," April 1983, was the source of cost development. 
One is referred to this manual if further detail in neutralization costs is 
needed. Additionally, other waste water treatment methods are costed in this EPA 
manual. 

The capital cost curves cover neutralization of waste water effluent (out-of-pipe) 
when required. The basic design variable is wastewater flow. Applicability of the 
curves are for effluent to be neutralized that ranges in volume from 0.001 to 876 
L/s (22.8 to 20 million gal/d). It is assumed that flow equalization is provided 
by a tailings pond. The costs apply to the neutralization of either acidic or 
basic waste water streams originating from mine, mill, or combined mine and mill 
after it flows out-of-pipe from the central impoundment pond. In most mining oper- 
ations further waste water treatment costs are not required. The system consists 
of chemical addition and two-stage neutralization tanks. It is assumed that pH and 
suspended-dissolved solid content of influent to the system will be unknown at this 
level of costing. Basis of design uses a standard dosage of 100 mgLl lime and 100 
mg/L acid to achieve a pH of 7.0 over a pH range of 6.5 to 8.0. 

BASE CURVES 

Total costs are described by two sets of cost curves based on daily average waste 
water flow rate (X) in liters per second. The curves include all costs associated 
with the construction of the treatment facility including mixing tank, attenuation 
tank, chemical storage, agitators, piping, electrical, and instrumentation. These 
costs are distributed as follows: 

Construction labor cost 22% 

Construction supply cost 13% 

Purchased equipment cost 65% 

For waste water effluent rates between 0.001 to 8.76 L/s the capital cost is 
(Y C 0.001-8.76 L/s) = 123, 144. 490 (X) * 094 and is distributed as follows: 

(L) Construction Labor Cost (Y L 0.001-8.76 L/s> = 27,091.780(X) * 094 

(S) Construction Supply Cost (Y s 0.001-8.76 L/s> = 16,008.780(X) ' 094 

(E) Purchased Equipment Cost (Y E 0.001-8.76 L/s > = 80,043.930(X) ' 094 

For waste water effluent rates between 8.76 to 876 L/s the capital cost is 
(Y c 8.76-876 L/s) - 26,346.39 (X)°* 562 and is distributed as follows: 



157 
(L) Construction Labor Cost (Y L 8.76-876 L/s) = 5, 796. 21 (X) * 562 
(S) Construction Supply Cost (Y s 8.76-876 L/s) = 3,425.03(X) ' 562 
(E) Purchased Equipment Cost (Y E 8.76-876 L/s) = 17,125.15(X) * 562 



158 



Surface Mining— Capital Costs 



1,000 



CO 

a 
o 

X3 



CO 

1 100 

CO 
O 



to 
o 
o 



10 

























































































































































































































































































































































, x 0.094 ■ 
Y c = 123,1 44. 490(X) 

0.001 <X< 8.76 






















I III! I III 



0.001 



0.01 0.1 1 

FLOW RATE, liters per second 

2.2.6. 4.2.a Wastewater treatment 
NEUTRALIZATION 



10 



159 



Surface Mining— Capital Costs 



10.000 



n 

o 

o 1,000 



m 
-o 

c 

D 
CO 
D 
O 

JO 



O 

o 



100 



10 



































































































































y s' 












































































































































s 


' 






























































































0.562 
Y r = 26,346.39(X) 
















i 


8 


.76 <" 


<< 8: 


76 


i 



10 100 

FLOW RATE, liters per second 

2.2.6. 4.2.b Wastewater treatment 
NEUTRALIZATION 



1,000 



160 

2.2. SURFACE MINING— CAPITAL COSTS 

2.2.7. RESTORATION DURING CONSTRUCTION 

Mine restoration is the process of initiating and accelerating the natural contin- 
uous trend toward recovery (stabilization, etc.), the type of environment (desert, 
flatland, grasslands, mountains, etc.), and the restoration requirements by law in 
any given State (which range from none to very strict). Some States require per- 
mits prior to disturbing the ground surface. Typically, the permit specifies that 
the area must be reclaimed, hectare for hectare, to a use similar to the prior use 
or other beneficial use. Most restoration activities for mines include regrading 
and leveling plant sites (and revegetation of the disturbed area) but do not in- 
clude backfilling (in most cases backfilling is not required by law). 

If backfilling is employed in the restoration plan use the Excavation, Load and 
Haul Overburden and Waste section (2.2.1.4.) to obtain backfilling cost. The re- 
vegetation cost varies greatly depending on the method used (hand or machinery), 
materials used, type of seeds or plants, fertilizer, mulch, chemicals (such as lime 
for reducing acidity), and whether irrigation is necessary. Climate and ground 
slope are factors that determine the type and, therefore, the costs of restora- 
tion. The costs given in the following tablulation are representative costs for a 
specific restoration task. The actual cost could range higher or lower than the 
cost given in the table. 

Where restoration methods use motorized equipment, the cost components (from the 
Industrial Chemicals Index) are the following: 40% for labor, 40% for equipment 
operation, and 20% for supplies (fertilizer, seed, mulch, etc.). The cost compon- 
ents for equipment operation are 65% for fuel and lubrication, 25% for repair 
parts, and 10% for tires. If restoration work is accomplished manually, then the 
cost components (from the Industrial Chemicals Index) are 60% for labor and 40% for 
supplies. 



161 



COST COMPARISONS OF RESTORATION METHODS 



Cost per 
hectare 



Remarks 



SPECIFIC RESTORATION WORK (INDEPE NDENT OF 

$1,000- 



CLIMATE OR GEOGRAPHY) 



Revegetation on steep slope — roadside 
slopes, tailing slopes, or waste dump 1,500 
slopes, using hydroseeder with fiber 
mulch. 

Transplanting trees or shrubs by hand 5,000 
on moderate to steep slopes. 

Sand and gravel restoration, includes 3,000 

placers; leveling, grading, topsoiling, 

reseeding. 
Annual maintenance (fertilizers added 160 

for above) . 
Restoration of borrow pit - backfilling 400- None. 

leveling and reseeding. 600 



Based on using 18 kg/ha of seed, 
73 kg/ha of fertilizer, and ex- 
penses to use a boom crane, 
pickup truck, 2 equipment oper- 
ators, and a swamper. 

Assume 2,500 trees hand 
planted per hectare at $2 per 
tree or shrub. 

Based on a typical sand-and- 
gravel operation near Denver, 
CO. 

Cost for applying fertilizer. 



RESTORATION IN HIGH ALTITUDE (MOUNT AINOUS) TERRAIN 

$4,000 



Regrading and reseeding - not including 
topsoiling. 



Maintenance (added to regrading 
cost cost). 



130 



Topsoil removal not necessary for access 
to ore body — added to regrading cost 
(if necessary to remove topsoil to gain 
access to ore body, then only $l,300/ha 
of this cost would be attributed to 
restoration cost). 



7,000 



Regrading for adequate drainage 
to minimize erosion, seedbed 
preparation, and reseeding (in- 
cluding transplanting trees and 
shrubs) . 

Purchasing-applying fertilizer — 
application cost for 1 yr. If 
application is on area where at 
least 30-cm depth of topsoil has 
been added, only 1 year's appli- 
cation needed. If topsoil has 
not been added, then as many as 
4 applications may be required 
over a 6- to 8-year period. 

Using $2.30/m^ cost of stockpil- 
ing soil to cover a disturbed 
area to a depth of 30 cm. As- 
sume topsoil moved and emplaced 
once. If moved, then stored and 
moved again to final placement, 
cost could double). 



RESTORATION IN ARID AND SE MIARID LANDS 

$5,000 



Soil added 



Required to achieve restoration 
on only the most severely dis- 
turbed sites. Generally serves 
to accelerate the rate of a- 
chieving permanent self- 
sustaining vegetation. 



162 



COST COMPARISONS OF RESTORATION METHODS — Continued 



Cost per 
hectare 



Remarks 



RESTORATION IN ARID AND SEMIARID LANDS— Continued 



Seeding and irrigation in arid climate $12,000- 
on tailings dams, waste dump sites, 15,000 
road slopes. 



Seed and fertilizer broadcast on surface 
— no soil coverage or mulch. 

Hydromulching with 680 kg wood fiber per 
hectare plus seed and fertilizer. 



700 



1,900- 
2,500 



Straw or hay broadcast with straw blower 2,500 
on surface at 3,400 kg/ha. 



Irrigation system cost (sprinkler 
or drip tube) is estimated at 
$8,000/ha. Water assumed to be 
pumped on site at annual rate of 
12,000 to 18,000 m 3 /ha at $63 
to $67 per 1,000 m 3 of water. 

Minimum slope where seed will 
cover naturally with soil. Seed 
broadcast manually. 

Most common southwestern U.S. hy- 
dromulch mix; will hold seed and 
fertilizer in place on steep and 
smooth slopes. 

Very effective as energy absorber 
and mulch. Not used on steep 
slopes. Cost increase signifi- 
cant if slopes over 14 m from 
access . 



163 
2.2. SURFACE MINING— CAPITAL COSTS 
2.2.8. ENGINEERING AND CONSTRUCTION MANAGEMENT FEES 

The engineering and construction management fees curves are based on the net con- 
structed cost (X) for numerous projects of varying complexities. The net con- 
struction cost is the sum of the group cost for sections 2.2.1. (Preproduction 
Development), 2.2.2. (Mining Equipment), 2.2.3. (Transportation), 2.2.4. (Mine 
Plant General Operations), 2.2.6. (Infrastructure), and 2.2.7. (Restoration During 
Construction) . The total engineering and construction management fee curve is 
based on a single firm performing both tasks. The other two curves are based on 
different firms performing each task. Factors for escalation, location, etc., 
should not be applied to any of the curves. 

The equations for each of the individual curves are as follows: 

The construction management fee cost is (Y(0 = 0.051(X)0*895 

The design and engineering fee cost is (Yg) - 1.120 (X)0* 797 

The total design, engineering, and construction management fee cost is 
(Y T ) « 0.325(X)°-900 



164 



Surface Mining— Capital Costs 



10,000 



1,000 



m 

l. 

~5 



■a 
c 
a 
(/> 

3 
O 

-C 



CO 

— 

UJ 



100 



£ 10 



0.1 





















































^ 




























■f 




/ 
























^ 


V% 






















^ 


V&A 


w 




















V 


sS _<\ ^LY ->\^ 


/ 
























/ 


















A 


J' 




















& 


<5> 
















r 




i^V^- 
















\j 


JZT&s ,_ 


w 












































y / 


Ko 


p 






















* \ 


— ■»« 


./£_ 


























J 7 ' 


Engineering management fees 

Y E =1. l2 0(X) a797 

Construction management fees 

Y C =0.05,(X)°- 895 

Engineering and construction 
management fees 

Y T =0.325(X) a90 ° 
























/ * 


\<^ 












£° 


i 








/ 


r 








- y 6 












































































8! 


3.0( 


io <; 


<< 


115 


,000 


,00 


D 



10 100 1,000 10,000 100,000 1,000,000 

NET CONSTRUCTION COST, thousands of dollars 

2.2.8. Engineering and construction management fees 



165 
2.2. SURFACE MINING—CAPITAL COSTS 
2.2.9. WORKING CAPITAL 

Working capital is the cash required to sustain a mining and /or milling operation 
between mining the ore and receiving revenue from its sale. It is the capital re- 
quired to meet out of pocket expenses, such as payroll, equipment operation, utili- 
ties, and administrative operating costs. In aggregate, these are the total opera- 
ting costs for the operation during the designated time period. Because this time 
lag persists; that is, monies received in payment for September's production are 
reinvested in material and supplies to produce ore in November or December, a 
continuing account must be maintained as long as the operation is active. 

A reasonable estimate of this lag period is dependent upon the type of operation 
under study. For operations that must send concentrates to a smelter, working cap- 
ital is estimated as 10 weeks of operating, administrative, and transportation 
costs. This estimate includes Two weeks for transportation by rail to the smelter 
as well as two months for the smelter to make payment. By far the majority of 
precious and nonferrous metal producers can be thus classified. 

Less working capital, 6 weeks of operating and administrative costs, is required 
for mines that market their product directly or that have vertically integrated 
processing facilities (i.e., same company owns smelter and/or refinery or company 
sells the end product). 

ADJUSTMENT FACTORS 

Adjustments should be considered if the transportation time to the smelter or 
smelter settlement time varies from assumed values. Adjustments should also be 
made to mine working capital if large mined ore stockpiles are maintained between 
the mining and milling stages, as this also advances the final settlement date. 

For mines with mills that do not ship concentrates on a regular schedule because of 
remoteness and /or do not operate year-round, working capital should be increased 
appropriately. 



166 

3.2. SURFACE MINING—OPERATING COSTS 
3.2.1. PRODUCTION DEVELOPMENT 
3.2.1.1. CLEARING 

The curve for clearing production is based on costs for medium light growth on ter- 
rain with a side slope of 20% to 50%. Estimate one tree, 0.33 m in diameter, per 
40 m^. The rate of clearing is determined by the surface mine production rate. 

Total daily operating cost is the sum of three separate cost curves (labor, sup- 
plies, and equipment operation) having a clearing rate of (X), in hectares per 
day. The curves are valid for operations between 0.1 and 10 ha/d, operating one 
shift per day. The curves include all daily operating and maintenance costs asso- 
ciated with clearing a land surface for further development. 

BASE CURVE 

(L) Labor Operating Cost (Y L ) = 1,552.120(X) * 819 

The operating labor costs are distributed as follows: 

Direct labor 84% 

Maintenance labor 16% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 
per hour 
(base rate) 

Dozer operator 21% $16.33 

Truck driver 6% 15.89 

General laborer 73% 13.66 

The average wage for labor is $14.28 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 245.963(X) - 953 

The supply cost consists of 78% fuel oil and 22% tools, cables, and chokers for 
clearing operations of 0.1 to 5 ha/d. For clearing operations of 5 to 10 ha/d, 
the supply cost consists of 83% fuel oil (for burning trees and scrub) and 17% 
tools, cables, and chokers. 

(E) Equipment Operating Cost (Y E ) = 549.565(X) * 890 
The equipment operating cost consists of 

Repair parts Fuel and lube Tires 

Crawler dozers 51% 49% 

Trucks, pickups, 
and chainsaws 14% 80% 6% 



167 

Equipment operating costs are based on a spread of 87% for crawler dozers and 
13% for trucks, pickups, and chainsaws. 

ADJUSTMENT FACTORS 

Brush Factor For light clearing conditions where the growth consists mainly of 
brush and small trees, multiply the curves by the following factor: 

Brush factor (Yg LIGHT ^ = 0*25 

For heavy clearing conditions, defined as when clearing a dense growth of trees 
(diameter of the trees commonly exceeding 0.33 m), multiply the curves by the 
following factor: 

Brush factor (Yjj DENSE^ = 1«75 

Side Slope Factor For clearing on terrain level to 20% side slope, multiply the 
costs obtained from the curves by the following factor: 

Side slope factor (Fg o%-20%^ = 0*8 

For clearing on terrain with side slopes from 50% to 100%, multiply the costs 
obtained from the curves by the following factor: 

Side slope factor (F s 50%-100% ) = 1#2 

On rocky slopes and slopes over 100%, multiply the costs obtained from the 
curves by the following factor: 

Side slope factor (Fg +100%^ = 2.5 

Burning Factor When the burning of cleared brush and trees is prohibited because 
of environmental regulations, the brush and trees will have to be stacked or 
buried. If burning is prohibited, multiply the costs obtained from the curves 
by the following factors: 

Labor factor (F L ) =1.2 

Supply factor (Fg) =0.2 

Equipment operation factor (Fg) =1.2 



168 



Surface Mining-Operating Costs 



100,000 



10,000 - 



>» 
a 
■a 

«_ 
a 



c5 1.000 



o 

•o 



CO 

o 
o 



100 



10 



I III 












, % 0.81 9 
_ Y L = 1,522.1 20(X) 

0.953 
_ Y s = 245.963(X) 

, x 0.890 
_ Y E = 549.565(X) 

0.1 <X< 10 






























































































55 


f •-rf'T, 








-- 








V<= 








































rf ^°V^ " 










^^ 






39 e^>- 














^5 


C\®^-^ 






























_Jt- — 




















^ 


^^ 






































^ 









































0.1 



1 

RATE, hectares per day 
3.2.1.1. Clearing 



10 



169 



3.2. SURFACE MINING— OPERATING COSTS 
3.2.1. PRODUCTION DEVELOPMENT 
3.2.1.2. CORE DRILLING 



Core drilling varies from nonexistent to extensive depending on many unknown fac- 
tors. Core drilling is performed on centers varying from 30 to 245 m and to vary- 
ing depths. The following tabulation gives the average range of cost for core 
diameter and depth of hole for drilling medium hard rocks. Costs could be higher 
or lower depending on hardness, location, access, and weather conditions. 



Drilling cost, dollars per meter 



Core 


Drilling depth range, m 


Size 


Diam , cm 


0-150 


150-300 


300-450 


450-600 


PQ 


8.49 
6.10 
5.40 
4.13 
2.86 
2.22 


$100-$115 
62- 79 
59- 71 
49- 64 
43- 57 
36- 52 


$125-$138 
69- 85 
62- 75 
52- 69 
49- 62 
43- 59 


NAp 

$90 

80 

75 

70 

NAp 


NAp 

$100 

90 

85 

80 

NAp 



NAp Not applicable, 



ADJUSTMENT FACTORS 



Subcontractor Factor If drilling is accomplished by a drilling subcontractor, mul- 
tiply cost by the following factor to compensate for subcontractor's markup. 

Subcontractor factor (Fg) = 1.1 



For additional details, see section 2.1.1. (Exploration). 



170 

3.2. SURFACE MINING—OPERATING COSTS 

3.2.1. PRODUCTION DEVELOPMENT 

3.2.1.3. DRILL AND BLAST OVERBURDEN AND WASTE 

The curves have been developed In two parts. The total crawler-type percussion 
drill cost is the sum of three separate cost curves (labor, supplies, and equipment 
operation) based on a production rate (X), in metric tons of overburden and waste 
per day. The curves are valid for operations between 1,000 and 8,000 mt, operating 
three shifts per day. The curves reflect costs for drilling 6-m-high benches with 
crawler-type percussion drills. Spacing of 2.5-in (6.35-cm) holes is on a pattern 
of 1.5 by 2 m to a depth of 7 m. The powder factor is 0.30 kg/mt. 

The total daily rotary drill cost is the sum of three separate cost curves (labor, 
supplies, and equipment operation) based on a production rate (X), in metric tons 
of overburden and waste per day. The curves are valid for operations between 8,000 
and 300,000 mtpd, operating three shifts per day. Drilling is performed with 
rotary drills having a downpressure of from 13,600 to 56,700 kg. The powder factor 
varies from 0.11 to 0.20 kg/mt of waste with an average of 0.14 kg/mt of waste. 
Holes drilled average 12.25-in (31.12-cm) diameter from a range of 6- to 13.75-in 
(15.24- to 34.93-cm) diameter. Costs are based on drilling hard rocks with an 
average compressive strength (30,000 psi or 2,100 kg/cm^). Bench heights are 12 
to 18 m averaging 15 m. Drilling patterns and overdrilling varies with a range of 
100 to 300 mt of blasted material per linear meter of drill hole. Secondary 
drilling and blasting varies from 0% to 10% of blasted material. 

The curves include all daily operating and maintenance costs associated with drill 
and blast. 

BASE CURVE 

(L) Labor Operating Cost (Percussion Drill) (Y L PERCUSSION^ = 1.747 (X) * 909 

The operating labor costs are distributed as follows: 

Direct labor 76% 

Maintenance labor 24% 

The direct labor costs consist of the following typical range of personnel: 

Small Large Av salary 

(100 to (3,000 to per hour 

3,000 mtpd) 8,000 mtpd) (base rate) 

Drilling crew 70% 83% $15.22 

Blasting crew 30% 17% 14.79 

The average wage for labor is $15.84 per worker-hour (including burden and 
average shift differential). 



171 

(L) Labor Operating Cost (Rotary Drill) (Y L ROTARY ) = 0.042(X) 1 * 035 
The operating labor costs are distributed as follows: 

Direct labor 43% 

Maintenance labor 57% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 
per hour 
(base rate) 
Rotary and secondary 

drilling crews 67% $15.24 

Blasting crew 33% 15.00 

The average wage for labor is $15.45 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Percussion Drill) (Y s PERCUSSION^ = 30.278(X) * 504 

The supply costs for percussion drill curve include drill bits and steel -related 
items and blasting supplies in the following cost proportions: 

Small Large 

(100 to (3,000 to 

3,000 mtpd) 8,000 mtpd) 
Drill bits and 

steel -related items 10% 25% 

Blasting supplies 90% 75% 

(S) Supply Operating Cost (Rotary Drill) (Y s rotary) = 0.147 (X) * 984 

The supply costs for rotary drill curve include drill bits and steelrelated 
items and blasting supplies in the following cost proportions: 

Small Large 

(8,000 to (100,000 to 

100,000 mtpd) 300,000 mtpd) 
Drill bits and 

steel-related items 26% 16% 

Blasting supplies 74% 84% 



172 

818 

(E) Equipment Operating Cost (Percussion Drill) (Y p ercUSSION^ = !« 771 ( x ) 

The equipment operating costs for percussion drill and blast are 86% for 
drilling equipment and 14% for trucks. The equipment operating cost includes 
power for the drills, fuel and lubrication for trucks and drill compressors, 
repair parts for drills and supporting equipment, and tire costs for supporting 

equipment . 

The equipment operating cost distribution is 

Repair parts Fuel and lube Tires 

Drill equipment 58% 42% 

Trucks 8% 87% 5% 

(E) Equipment Operating Cost (Rotary Drill) (Y E ROTARY^ = 0.0294(X) 1 * 057 

The equipment operating costs for rotary drill and blast are 95% for drilling 
equipment and 5% for supporting equipment. The equipment operating cost in- 
cludes power for the drills, fuel and lubrication for trucks and drill com- 
pressors, repair parts for drills and supporting equipment, and tire costs for 
supporting equipment. 

The equipment operating cost distribution is 

Repair parts Fuel and lube Tires Power 

Drill equipment 79% 10% - 11% 

Trucks 11% 80% 9% 

ADJUSTMENT FACTOR 

Drill and Blast Factor (D & B Factor) The curves indicate average costs for a 
wide range of materials as can be noted by drill sizes, bit sizes, powder 
factors, and drill pattern. To determine drilling and blasting costs, co- 
nsideration must be given to material hardness, abrasiveness, natural fra- 
ctures and jointing, and maximum-size fragments that can be loaded, haul- 
ed, and processed. 

For favorable drilling conditions, multiply the costs obtained from the c- 
urves by the following factor: 

D & B factor (F D qOOd) =0.6 

Where the drilling conditions are unfavorable, multiply the costs obtained 
from the curves by the following factor: 

D & B factor (F D SEVERE) = 2 '° 



173 



100,000 



O 


10,000 


© 

a 




n 

i_ 
a 

"o 

■o 




o 
o 


1,000 



100 



Surface Mining— Operating Costs 



"Y L = 1.747(X) 



0.504 
Y s = 30.278(X) 

, x 0.818 
Y E = 1.771 (X) 

; 1,000 <X< 8,000 



i i i r 



Percussion drill 
0.909 



& 





Rotary drill 

1.035 



Y L = 0.042(X) 



0.147(X) 



0.984 

i 

1.057 



Y E = 0.029(X) 
8,000 <X< 300,000 



i i i 



1,000 10,000 100.000 1,000,000 

OVERBURDEN AND WASTE, metric tons per day 



3.2.1.3. Drill and blast 
DRILLS 



174 

3.2. SURFACE MINING - OPERATING COSTS 

3.2.1. PRODUCTION DEVELOPMENT 

3.2.1.4.1. EXCAVATION, LOAD AND HAUL OVERBURDEN AND WASTE 
BUCKET WHEEL EXCAVATION 

The total dally cost is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a production rate (X), in metric tons of overburden 
and waste per day. The curves are valid for operations between 2,200 and 125,000 
mtpd, operating three shifts per day. The costs include only the operation of the 
bucket wheel excavator. 

BASE CURVES 

The base curve is predicated on excavating overburden or waste material. The daily 
output of an excavator is based on the operating time and output efficiency of the 
machine. The base curve assumes an operating time of 50% and an output efficiency 
of 46%. The operating time is the percent of 24 hours that a machine operates each 
day. The output efficiency is the percent of theoretical capacity that a machine 
delivers for a particular overburden. 

(L) Labor Operating Curve (Y L ) = 7.414(X) ' 556 

The operating labor costs are distributed as follows: 

Direct labor 65% 

Maintenance labor 35% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 

per hour 

(base rate) 
Bucket wheel operator.... 72% $16.78 

Bucket wheel helper 3% 13.66 

Bucket wheel laborer 25% 11.68 

The average wage for labor is $15.58 per workerHiour (including burden and av- 
erage shift differential). 

(S) Supply Operating Cost (Y s ) = 0.058(X)°« 859 

The supply cost consists of 100% electric power. 

(E) Equipment Operating Cost (Y E ) = 0. 212(X)°* 681 

The equipment operating cost consists of 100% for repair parts and materials. 



175 

ADJUSTMENT FACTORS 

Shift Adjustment The curve is based on a three-shift-per-day operation. Typically 
bucket wheel excavators are run continuously. For a oneor two-shift operation, 
decrease the operating costs proportionately. 

Operating Time Factor The base case assumes a 50% operating time. Bucket wheel 

excavators do not have high availabilities. The range of expected operating t- 
ime is 41% to 60%. To adjust the base case for different operating times, mul- 
tiply the cost obtained from the labor curve by the following factor: 

Labor factor (F L ) = [50/(P)]°* 554 
where P = new percent operating time. 

Output Efficiency Factor The output efficiency is the ratio of the actual produc- 
tion to the theoretical capacity of the bucket wheel excavator. The theoreti- 
cal capacity is based on the number of bucket discharges per minute and the 
bucket size. The theoretical capacity is normally expressed in loose cubic 
meters per hour. The factors that determine the output efficiency are the dif- 
ficulty of digging (required cutting force), the percentage of clay or compact 
material in the bank, and site-specific details such as climatology. The range 
of output efficiencies is from 44% to 85%. To adjust the curves for different 
output efficiency, multiply the costs obtained from the curves by the following 
factor: 

Labor factor (F L ) = [46/(E)]°- 555 

Supply factor (F s ) = [46/(E)] °' 858 

Equipment operation factor (F E ) = [46/(E) ] 0, 680 
where E = new percent output efficiency. 



176 



10,000 



a 

T3 

i_ 
O 

a. 
en 

"o 

T3 



in 
o 

o 



1.000 



100 



10 















Surface h 


linir 


g— Operatin 


g < 


2osts 








































































y 




















< s^ 
























^ 






y 


/ 














/ 










jT 






































s' 










■*^ 


/ 






















4\ 




& 


















/ 


/ 


/ y 




















,/ 


y 


7"\0 
















<<i 


yf 


, 0.556 " 
Y L -7.414(X) 

, N 0.859 - 
Y s = 0.058(X) 

0.681 
Y E =0.212(X) 

2,200<X<125,000 




s 


/, 












<y 














































I I I I I I 



1,000 10,000 100,000 1,000,000 

OVERBURDEN AND WASTE, metric tons per day 

3.2.1.4.1. Excavation, load and haul 
BUCKET WHEEL EXCAVATION 



177 

3.2. SURFACE MINING— OPERATING COSTS 

3.2.1. PRODUCTION DEVELOPMENT 

3.2.1.4.2. EXCAVATION, LOAD AND HAUL OVERBURDEN AND WASTE 
DRAGLINES 

The curve for draglines covers excavating and casting a medium-digging overburden 
and waste material from a dry pit into a spoil pile. The material is assumed to w- 
eigh 2.0 mt/m 3 for crawler (diesel-powered) draglines and 1.5 mt/m 3 for walking 
(electric-powered) draglines. 

Crawler draglines range in size from 2- to 20-yd 3 capacity; walking draglines, 
from 16- to 50-yd 3 capacity. One dozer is provided for each dragline operation 
for cleanup and support. 

The total daily crawler dragline cost is the sum of two separate cost curves (labor 
and equipment operation) based on a production rate (X), in metric tons of over- 
burden and waste per day. The curves are valid for operations between 2,000 and 
15,000 mtpd, operating one shift per day. The total daily walking dragline cost is 
the sum of three separate cost curves (labor, supplies, and equipment operation) 
based on a production rate (X), in metric tons of overburden and waste per day. 
The curves are valid for operations between 15,000 and 150,000 mt, operating three 
shifts per day. The curves include all daily operating and maintenance costs asso- 
ciated with dragline excavation. 

BASE CURVE 

(L) Labor Operating Cost (crawler dragline) (Y L CRAWLER^ = 43.884(X) * 363 
The operating labor costs are distributed as follows: 

Small Large 

(2,000 to (10,000 to 

10,000 mtpd) 15,000 mtpd) 

Direct labor 59% 56% 

Maintenance labor 41% 44% 

The direct labor costs consist of the following typical range of personnel: 

Small Large Av salary 

(2,000 to (10,000 to per hour 

10,000 mtpd) 15,000 mtpd) (base rate) 

Crawler dragline operator.. 41% 26% $18.11 

Oiler 24% 22% 15.89 

Dozer operator 25% 23% 16.33 

Utility operator 10% 29% 13.66 

The average wage for labor is $16.13 per worker-hour (including burden and 
average shift differential). 



178 

(L) Labor Operating Cost (walking dragline) (Y L WALKING^ = 12.249(X)°* 5A2 
The operating labor costs are distributed as follows: 

Direct labor 62% 

Maintenance labor 38% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 
per hour 
(base rate) 
Walking dragline operator.. 30% $18.11 

Oiler 26% 15.89 

Dozer operator 27% 16.33 

Utility operator 17% 13.66 

The average wage for labor is $16.46 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (walking dragline) (Y s WALKING^ = 0.0395(X) 1 ' 003 
The supply cost consists of 100% electric power for the walking (electric) 
draglines. 

(E) Equipment Operating Cost (crawler dragline) (Y E CRAWLER ) = 2.218(X) 0,688 
The equipment operating cost for crawler draglines consists of 70% for the 
dragline and 30% for support equipment consisting of 25% crawler tractors and 
5% pickup trucks. 

(E) Equipment Operating Cost (walking dragline) (Y E WALKING^ = 0.533(X) 0,834 
The equipment operating cost for walking draglines consists of 66% for the 
dragline and 34% for support equipment consisting of 31% crawler tractors and 
3% pickup trucks. 

The general equipment operating cost distribution for draglines and support 
equipment is as follows: 

Walking draglines 

Crawler draglines 

Crawler dozers 

Rubber-tired support.... 

ADJUSTMENT FACTORS 

To determine the cost of a crawler dragline operation loading to trucks, use the 
values obtained from the electric shovels and trucks curve. Adjust the values by 
increasing each curve component 25% and combine equipment operation and supplies 
curve to account for the substitution of diesel fuel for electric power. (NOTE — 
Supplies values for the electric shovels and trucks curve include only electric 
power. ) 

LIMITATIONS OF DRAGLINE EXCAVATION CURVES 

The cost curves for draglines are very general and are meant to represent a typical 
excavating operation. Factors that greatly affect dragline excavation costs in- 
clude the swing angle of boom and hoisting height. 



Repair parts 


Fuel and lube 


Tires 


94% 


6% 


- 


65% 


35% 


- 


49% 


51% 


- 


8% 


90% 


2% 



179 



Surface Mining— Operating Costs 



100,000 



o 10,000 



o 

Q. 

2 
a 

o 



CO 

g 1.000 



100 



Crawler 


i — i—p — 

Irnn in« 


— 




















, N 0.363 
Y L = 43.884(X) 

, . 0.688 
Y E = 2.218(X) 

2,000 <X< 15,000 


















































<N 
















^ 
<£ 




















4^- 






















fc 


/^ 






















•.< 


& 


y 






















<&\ 


l /~ 






















>J 


^/ 


f 


$_ 


/ 


/ 
















\^< 


J 


e 














> 


^r 


^ c 




Walking Dragline 

, N 0.542 
Y L = 12.249(X) 

"Y s = 0.0395(X) 1 ' 003 
.Y F = 0.553rx^ ' 834 




-H 




w 


r 




/ 






^ 


r o° 




/ 


/ 




<c 


W 














<Sr 






























t 
11 


3.( 

■ 


D00 < 


x< 1 


50, 

. ; 


000 

1 



1,000 10,000 100,000 1,000,000 

OVERBURDEN AND WASTE, metric tons per day 

3.2.1.4.2. Excavation, load and haul 
DRAGLINES 



180 

3.2. SURFACE MINING— OPERATING COSTS 

3.2.1. PRODUCTION DEVELOPMENT 

3.2.1.4.3. EXCAVATION, LOAD AND HAUL OVERBURDEN AND WASTE 
ELECTRIC SHOVEL AND TRUCKS 

The curves show the cost per day for excavating, loading, and hauling both common 
and shot rock. For common earth excavation, 1 bank, m^ equals 2.08 mt; for shot 
rock, 1 bank m^ equals 2.61 mt. 

The loading units are electric shovels and diesel front-end loaders ranging in size 

from 5 to 30 yd^, with an average of 15 yd^. Rear-dump trucks from 35 to 170 

st are the main hauling units, with the average size of all trucks at 100 st. The 

ratio of trucks to loading units averages 6:1. The curves reflect an average haul 

of 2,000 m one-way on an 8% grade from a pit 120 m in depth on wide, well-maintained 

roads. 

The total daily cost is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a production rate (X), in metric tons of overburden 
and waste per day. The curves are valid for operations between 8,000 and 300,000 
mtpd, operating three shifts per day. The curves include all daily operations and 
maintenance costs associated with load and haul. 

BASE CURVE 

(L) Labor Operating Cost (Y L ) = 2.694(X) ' 790 

The operating labor costs are distributed as follows: 

Small Large 

(8,000 to (50,000 to 

50,000 mtpd) 300,000 mtpd) 

Direct labor 61% 53% 

Maintenance labor 39% 47% 

The direct labor costs consist of the following typical range of personnel: 

Small 
(8000 to 
50,000 mtpd) 

Shovel operator 14% 

Oiler 6% 

Dozer operator 17% 

Grader operator 5% 

Front-end loader operator.. 3% 

Truck driver 52% 

General laborer 3% 

The average wage for labor is $16.54 per worker-hour (including burden and 
average shift differential). 



Large 


Av salary 


(50,000 to 


per hour 


300,000 mtpd) 


(base rate) 


8% 


$18.11 


4% 


15.89 


23% 


16.33 


7% 


16.33 


1% 


16.33 


57% 


15.89 


- 


13.66 



181 



(S) Supply Operating Cost (Y s ) = 0. 188(X)°* 780 

The supply cost consists of 100% electric power for the walking (electric) 
draglines. 

(E) Equipment Operating Cost (Y E ) = 1 .850(X) ' 867 

The equipment operating cost covers the daily operating cost for all excava- 
tion, loading, and hauling equipment and includes allowances for repair parts, 
tires, lubrication, and fuel consumption. 

The equipment operating cost distribution for a shovel and truck operation is 

Shovels 7.0% 

Rear-dump trucks 70.0% 

Crawler dozers 12.0% 

Rubber-tired support 11.0% 

The general equipment operating cost component distribution is as follows: 

Repair parts Fuel and lube Tires 

Shovels, electric 96% 4% 

Rear-dump trucks 25% 48% 27% 

Crawler dozers 50% 50% 

Rubber-tired support 35% 47% 18% 

ADJUSTMENT FACTOR 

Haulage Factor To determine costs for hauls of varying length or depth of pit, 
multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) = 0. 117(R)°- 030 (L) - 263 

Equipment operating factor (F E ) = 0.0546(R)°« 047 (L)°- 353 
where R = depth of pit, in meters (R = 1.0 for negative or 0% 

grade from loading point), 
and L = length of haul, in meters. 



182 



Surface Mining— Operating Costs 



1,000,000 



100,000 - 



O 

•v 

o 
a. 

to 



b 10.000 



o 

■o 



CO 

o 
o 



1,000 



100 



i riii 






















:Y L =2.694(X) a79 ° 

Y s =0.18 8 (X) a78 ° 

0.867 

- Y E = 1.850(X) 

- 8,000 < X < 300,000 










































































■* 




















s 
















. 


v n<\^ 
















, k e< 


*N 




/ 




















A 


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V 


3^ 


























/ 


y 


























y * 


y 
























































s 


' 


































«&• 


3 


























cO? 


v ^ 


^ 


























Js\ 


^ 











































































































1.000 10.000 100,000 1,000,000 

OVERBURDEN AND WASTE, metric tons per day 

3.2.1.4.3. Excavation, load and haul 
ELECTRIC SHOVEL AND TRUCKS 



183 

3.2. SURFACE MINING—OPERATING COSTS 

3.2.1. PRODUCTION DEVELOPMENT 

3.2.1.4.4. EXCAVATION, LOAD AND HAUL OVERBURDEN AND WASTE 
FRONT-END LOADER OR DIESEL SHOVEL AND TRUCKS 

The curve shows the cost per day for loading and hauling both common and shot rock. 
For common earth excavation, 1 bank nw equals 2.08 mt; for shot rock, 1 bank m^ 
equals 2.61 mt. 

The costs are based on mines using front-end loaders or diesel shovels for loading 
and trucks for haulage. The loaders and shovels range in size from 1 to 6 yd 3 
and the trucks range from 10 to 35 st. The curves reflect an average haul of 750 m 
one way on an 8% grade from a pit 60 m deep. 

The total daily cost is the sum of two separate cost curves (labor and equipment 
operation) based on a production rate (X), in metric tons of overburden and waste 
per day. The curves are valid for operations between 1,000 and 10,000 mtpd, oper- 
ating two shifts per day. The curves include all daily operating and maintenance 
costs associated with excavation, loading, and haulage. 

BASE CURVE 

(L) Labor Operating Cost (Y L ) = 37.003(X) ' 529 

The operating labor costs are distributed as follows: 

Direct labor 70% 

Maintenance labor 30% 

The direct labor costs consist of the following typical range of personnel: 

Small 

(1,000 to 

3,000 mtpd) 

Loader-shovel crew 30% 

Truck haulage crew 46% 

Dozer operator 24% 

Rubber-tired support 
crew - 25% 16.11 

The average wage for labor for small operations is $16.20 per worker-hour 
(including burden and average shift differential). 

The average wage for labor for large operations is $16.42 per worker-hour 
(including burden and average shift differential). 

(E) Equipment Operating Cost (Y E ) = 24.620(X) ' 576 

The equipment operating cost distribution for front-end loader-diesel shovel 
and truck operation is 

Front-end loader -shovel. .. . 18% 

Rear-dump truck 43% 

Crawler dozer 23% 

Rubber-tired support 16% 



Large 


Av salary 


(3,000 to 


per hour 


10,000 mtpd) 


(base rate) 


21% 


$16.24 


37% 


15.89 


17% 


16.33 



70% 


30% 


- 


33% 


44% 


23% 


2 8% 


52% 


20% 


51% 


49% 


- 


28% 


63% 


9% 



184 

The general equipment cost component distribution is as follows: 

Repair parts Fuel and lube Tires 

Shovel, diesel 

Front-end loader 

Rear-dump truck 

Crawler dozer 

Rubber-tired support.... 

ADJUSTMENT FACTOR 

Haulage Factor To determine costs for hauls of varying haul length or depth of pit 
multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) = 0. 155(R)°- 030 (L) - 263 

Equipment operation factor (F E ) = 0.080(R)°« 047 (L)°« 353 
where R = depth of pit, in meters (R = 1.0 for negative or 0% 

grade from loading point), 
and L = length of haul, in meters. 



185 



Surface Mining— Operating Costs 



10,000 



O 

■a 

u 

o 
a 

in 

k. 
a 

"o 

■a 



CO 

o 
o 



1,000 





































^ 






^ 




, N 0.529 
Y L = 37.003(X) 

Y E = 24.620(X) °' 5 6 

1,000 <X< 10,000 


I I 



1,000 10,000 

OVERBURDEN AND WASTE, metric tons per day 

3.2.1.4.4. Excavation, load and haul 
FRONT-END LOADER OR DIESEL SHOVEL AND TRUCKS 



186 

3.2. SURFACE MINING—OPERATING COSTS 

3.2.1. PRODUCTION DEVELOPMENT 

3.2.1.4.5. EXCAVATION, LOAD AND HAUL OVERBURDEN AND WASTE 
HYDRAULIC MINING 

The total daily cost is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a production rate (X), in metric tons of material 
slurried per day. The curves are valid for operations between 9,500 and 58,000 
mtpd, operating three shifts per day. The costs include the operation of the moni- 
tors and high pressure water pumps. Not included in the estimates is the cost for 
pumping the slurry. 

BASE CURVES 

The base curve is for the hydraulic mining of phosphate matrix. The matrix is ex- 
cavated by draglines and deposited in "pits" where hydraulicing occurs. The hy- 
draulic monitors (also called guns, giants, or water cannons) break down the matrix 
for pumping to the processing plant. The monitors are mounted on a pit gun car 
that advances with the dragline. The base case assumes an 85% operating time and a 
water ratio of 0.67 mt of slurried ore per metric ton of water used. 

(L) Labor Operating Curve (Y L ) = 0.406(X) ' 771 

The operating labor costs are distributed as follows: 

Direct labor 83% 

Maintenance labor 17% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Monitor operator 59% $16.78 

Monitor helper 33% 13.66 

Laborer 8% 11.68 

The average wage for labor is $15.65 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 0.883(X) * 685 

The supply cost consists of 100% electric power. 

(E) Equipment Operating Cost (Y E ) = 0. 019 (X)°* 748 

The equipment operating cost consists of 100% for monitor repair parts and 
materials. The repair costs are divided 30% for water pumps and 70% for the 
monitor systems (hydraulic pumps, controls, and monitors). 



187 

ADJUSTMENT FACTORS 

Water Ratio Each deposit to be hydraulically mined will require different quanti- 
ties of water, and therefore, different sizes or numbers of monitors. The more 
competent (tougher) the deposit, the more water that will be required. The 
measure of difficulty in slurrying the deposit is the mass ratio of ore exca- 
vated to water used. To adjust the base curves for different water require- 
ments, multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) = [0.67/(R)]°* 050 

Supply factor (F s ) = [0.67/CR)] 1 * 285 

Equipment operation factor (F E ) = [ 0.67/(R)] 0,327 

where R = new water ratio, defined as metric ton of ore slurried per 
metric ton of water used. 

For phosphate, the water ratio can vary from 0.7 to 0.3. For other appli- 
cations it can vary from 1.5 to 0.2. 

Tailings Factor Hydraulic mining can be used to excavate old tailings ponds for 
the reprocessing of the tailings. This application normally requires higher 
water pressure and larger monitors. To adjust the base curves for the hy- 
draulic mining of tailings, multiply the costs obtained from the curves by the 
following factors: 

Labor factor (F L ) = 3.32 

Supply factor (F s ) = 1.51 

Equipment operation factor (Fj?) = 1.12 

The tailings adjustment is based on a water ratio of 1.22 mt of tailings 
slurried per metric ton of water applied. 



188 



Surface Mining— Operating Costs 



10.000 



o 1.000 

T3 



4> 

a. 

10 

k. 
a 

"o 

■a 



m 
o 
a 



100 



10 



■■ 




.... 
















■ 
Y L = 0.406(X) 

, x 0.685 
Y s = 0.883(X) 

. x 0.748 
. Y E = 0.01 9(X) 

9.500<X< 58.000 


















































*>*^ 


^ 
















«-£^Vl&^ 


















^> v ' 
















; 


^ 






















































































































gft 


\*rr" 


















r 











1.000 10.000 

ORE, metric tons slurried per day 

3.2.1.4.5. Excavation, load and haul 
HYDRAULIC MINING 



100.000 



189 

3.2. SURFACE MINING— OPERATING COSTS 

3.2.1. PRODUCTION DEVELOPMENT 

3.2.1.4.6. EXCAVATION, LOAD AND HAUL OVERBURDEN AND WASTE 
SCRAPERS 

The curves show the cost per day for loading and hauling unconsolidated over- 
burden. Scraper production in metric tons per day is based on an assumed material 
having a weight of 2.2 mt/m^ and requiring ripping. 

The costs cover wheel tractor scrapers ranging in size and type from 150-hp self- 
loading elevating scrapers to 550-hp twin-engine scrapers. The curves are based on 
a one-way haul of 900 m on a level grade and include a 6% rolling resistance in the 
pit area. 

The total daily cost is the sum of two separate cost curves (labor and equipment o 
eration) based on a production rate (X), in metric tons of overburden and waste per 
day. The curves are valid for operations between 2,000 and 300,000 mtpd, operating 
three shifts per day. The curves include all daily operating and maintenance costs 
associated with load and haul. 

BASE CURVE 

(L) Labor Operating Cost (Y L ) = 3.825(X) * 735 

The operating labor costs are distributed as follows: 

Direct labor 53% 

Maintenance labor 47% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Scraper operator 58% $16.33 

Crawler operator 32% 16.33 

Rubber-tired support operator.. 10% 16.11 

The average wage for labor is $16.64 per worker-hour (including burden and 
average shift differential). 

(E) Equipment Operating Cost (Y E ) = 0.602(X)°- 925 

The equipment operating cost distribution for a scraper operation is 

Scraper 71% 

Crawler-dozer 24% 

Rubber-tired support 5% 



47% 


15% 


47% 


- 


52% 


12% 



190 

The general equipment cost component distribution is as follows: 

Repair parts Fuel and lube Tires 

Scraper 38% 

Crawler-dozer 53% 

Rubber-tired support 36% 

ADJUSTMENT FACTORS 

Haulage Factor To determine costs for varying haul lengths and grades, multiply 
the costs obtained from the curves by the following factors: 

Labor factor (F L ) = 0.087(L)°* 359 (G) 1 ' 530 

Equipment operation factor (F E ) = 0.064(L)°*403( G )1.620 

where L = length of haul, in meters, 

and G = grade [defined as 1.0 plus or minus (percent grade/100)]. 

Ripping Factor If no ripping is required, multiply the costs obtained from the 
curves by the following factor: 

Ripping factor (F R ) = 0.85 



191 



Surface Mining— Operating Costs 



100,000 



a 10,000 

"O 



a. 

CO 

L. 

a 

~o 
■o 



c/) 

8 1.000 



100 





















































/ 


























~ -X 


/ 
























<£ 


?y 




















A 




P' 


/ 

% 


















< 


&/X 
























r> 










































































// 




























/ 




























/ 


























, v 0.735 - 
Y L = 3.825(X) 

, ,0.925 
Y = 0.602(X) 

2,000 <X< 300,000 


















































I ! I III 



1,000 10,000 100,000 1,000,000 

OVERBURDEN AND WASTE, metric tons per day 

3. 2.1. 4.6. Excavation, load and haul 
SCRAPERS 



192 

3.2. SURFACE MINING - OPERATING COSTS 

3.2.2. MINING OF ORE 

3.2.2.1 DRILL AND BLAST ORE 
DRILLS 

The curves have been developed in two parts. For mines excavating from 100 to 
8,000 mtpd ore , the curves reflect costs for drilling 6-m high benches with 
crawler-type percussion drills. Spacing of 2.5-in holes is on a pattern of 1.5 by 
2 m to a depth of 7 m. The powder factor is 0.30 kg/mt^. 

For mines excavating from 8,000 to 100,000 mtpd, drilling is performed with rotary 
drills having a down pressure of from 13,600 to 56,700 kg. The powder factor 
varies from 0.11 to 0.20 kg/mt^ of ore. Holes drilled average 12.25-in 
(31.12-cm) diameter from a range of 6- to 13.75-in (15.24- to 34.93-cm) diameter. 
Costs are based on drilling hard rocks with an average compressive strength (30,000 
psi or 2,100 kg/cm^). Bench heights are 12 to 18 m and average 15 m. Drilling 
patterns and overdrilling varies with a range of 80 to 200 mt of blasted material 
per linear meter of drill hole. Secondary drilling and blasting varies from to 
10% of blasted material. 

The total daily cost is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a production rate (X) in metric tons ore per day. 
The curves are valid for operations between 100 and 100,000 mtpd, operating three 
shifts per day. The curves include all daily operating and maintenance costs asso- 
ciated with drill and blast. 

BASE CURVE 

(L) Labor Operating Cost (percussion drill) (Y L PERCUSSION^ = 1*747 (X) 0, 909 
The operating labor costs are distributed as follows: 

Direct labor 43% 

Maintenance labor 57% 

The direct labor costs consist of the following typical range of personnel: 

Small Large Av salary 

(100 to (3,000 to per hour 

3,000 mtpd) 8,000 mtpd) (base rate) 

Percussion drilling crew... 70% 83% $15.22 

Blasting crew 30% 17% 14.79 

The average wage for labor is $15.41 per worker -hour (including burden and 
average shift differential). 



193 

(L) Labor Operating Cost (rotary drill) (Y L ROTARY^ = 0.720(X) * 779 
The operating labor costs are distributed as follows: 

Small Large 

(8,000 to (30,000 to 

30,000 mtpd) 100,000 mtpd) 

Direct labor 53% 47% 

Maintenance labor 47% 53% 

The direct labor costs consist of the following typical range of personnel: 

Small Large Av salary 

(8,000 to (30,000 to per hour 

30,000 mtpd) 100,000 mtpd) (base rate) 
Rotary and secondary 

drilling crew 70% 65% $15.29 

Blasting crew 30% 35% 15.15 

The average wage for labor is $15.56 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (percussion drill) (Y s PERCUSSION^ = 30.278(X) ' 504 

The supply costs include drill bits, steel -related items, and blasting supplies 
in the following cost proportions: 

Small Large 
(100 to (3,000 to 
3,000 mtpd) 8,000 mtpd) 
Drill bits and steel- 
related items 10% 25% 

Blasting supplies 90% 75% 

(S) Supply Operating Cost (rotary drill) (Y s ROTARY^ = 0.152(X) ' 985 

The supply costs include drill bits, steel -related items and blasting supplies 
in the following cost proportions: 

Drill bits and steel- 
related items 18% 

Blasting supplies 82% 

(E) Equipment Operating Cost (percussion drill) (Y E PERCUSSION^ = 1»771(X) 0,818 
The equipment operating costs include power for the drills, fuel and lubrica- 
tion for trucks and drill compressors, repair parts for drills and supporting 
equipment, and tire costs for supporting equipment. 

The equipment operating costs for percussion drill and blast consist of 86% for 
drilling equipment and 14% for trucks. Drilling equipment costs include 58% for 
repair parts and 42% for fuel and lubrication. Supporting equipment costs 
include 87% for fuel and lubrication, 8% for repair parts, and 5% for tires. 



194 

(E) Equipment Operating Cost (rotary drill) (Y E ROTARY^ = 0. 614(X) 0, 783 

The equipment operating costs include power for the drills, fuel and lubrica- 
tion for trucks and drill compressors, repair parts for drills and supporting 
equipment, and tire costs for supporting equipment. 

The equipment operating costs for rotary drill and blast consist of 91% for 
drilling equipment and 9% for supporting equipment. Rotary drilling equipment 
operating costs include 77% for repair parts, 12% for fuel and lubrication, and 
11% for power. Supporting equipment costs include 76% for fuel and lubrica- 
tion, 17% for repair parts, and 7% for tires. 

ADJUSTMENT FACTOR 

Drill and Blast Factor (D & B Factor) The curves indicate average costs for a wide 
range of materials as can be noted by drill sizes, bit sizes, powder factors, 
and drill pattern. To determine drilling and blasting costs, consideration 
must be given to material hardness, abrasiveness, natural fractures and joint- 
ing, and maximum-size fragments that can be loaded, hauled, and processed. 

For favorable conditions, multiply the costs obtained from the curves by the 
following factor: 

D & B factor (F D gOOD^ = °- 6 

Where the above conditions are unfavorable, multiply the costs obtained from 
the curves by the following factor: 

D & B factor (F D SEVERE^ = 2 *° 



195 



Surface Mining— Operating Costs 



100,000 



10,000 - 



o 
•a 

© 

a 

w 

L. 

a 

"o 
•o 

H* 

to 

O 

o 



1,000 



100 



10 



I 1 I 1 I 
















Percussion Drill 

, v 0.909 

- Y L = 1.747(X) 

, N 0.504 

- Y s = 30.278(X) 

, % 0.818 
























































y 


" Yr= 1.771 (X) 
















y 








y 






^ ' 


100<X< 8,000 




y 


~ 




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■**" s 


it 


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v* 








j^ 


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*&' 


















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A. UT 


















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Rotary Drill 
Y L = 0.720(X) 0,779 

Y s =0.152(X) a985 I 

Y E =0.614(X) ' 783 " 
8,000 <X< 100,000 ' 


X 


/<* 












s 
















































































ll l III 



100 



1,000 10,000 

ORE, metric tons per day 

3.2.2.1. Drill and blast 
DRILLS 



100,000 



196 

3.2. SURFACE MINING—OPERATING COSTS 

3.2.2. MINING OF ORE 

3.2.2.2. EXCAVATION, LOAD AND HAUL ORE 
BUCKET WHEEL EXCAVATION 

The total daily cost is the sum of the three separate cost curves (labor, supplies, 
and equipment operation) based on a production rate (X) in metric tons ore per 
day. The curves are valid for operations between 2,200 and 125,000 mtpd, operating 
three shifts per day. The costs include only the operation of the bucket wheel ex- 
cavator. 

BASE CURVES 

The base curve is predicated on excavating ore. The daily output of an excavator 
is based on the operating time and output efficiency of the machine. The base 
curve assumes an operating time of 50% and an output efficiency of 46%. The oper- 
ating time is the percent of 24 hr that a machine operates each day. The output 
efficiency is the percent of theoretical capacity that a machine delivers for a 
particular overburden. 

(L) Labor Operating Curve (Y L ) = 7.414 (X) * 556 

The operating labor costs are distributed as follows: 

Direct labor 65% 

Maintenance labor 35% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Bucket wheel operator 72% $16.78 

Bucket wheel helper 3% 13.66 

Bucket wheel laborer 25% 11.68 

The average wage for labor is $15.58 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 0.058(X) ' 859 

The supply cost consists of 100% electric power. 

(E) Equipment Operating Cost (Y E ) = 0.212(X) 0,681 

The equipment operating cost consists of 100% for repair parts and materials. 

ADJUSTMENT FACTORS 

Shift Adjustment The curve is based on a three-shift-per-day operation. 

Typically, bucket wheel excavators are run continuously. For a oneor two-shift 
operation, decrease the operating costs proportionately. 



197 



Operating Time Factor The base case assumes a 50% operating time. Bucket wheel 
excavators do not have high availabilities. The range of expected operating 
time is 41% to 60%. To adjust the base case for different operating times, 
multiply the the cost obtained from the labor curve by the following factor: 

Labor factor (F L ) = = [50/(T)]°* 554 
where T = new percent operating time. 

Output Efficiency Factor The output efficiency is the ratio of the actual produc- 
tion to the theoretical capacity of the bucket wheel excavator. The theoreti- 
cal capacity is based on the number of bucket discharges per minute and the 
bucket size. The theoretical capacity is normally expressed in loose cubic 
meters per hour. The factors that determine the output efficiency are the 
difficulty of digging (required cutting force), the percentage of clay or com- 
pact material in the bank, and site-specific details such as climatology. The 
range of output efficiencies is from 44% to 85%. To adjust for different out- 
put efficiencies, multiply the costs obtained from the curves by the following 
factors: 

Labor factor (F L ) = [46/(E)]°« 555 

Supply factor (F s ) = [46/(E) ] °* 858 

Equipment operation factor (F E ) = [46/ (E) ] 0,680 
where E = new percent output efficiency. 



198 



10,000 



o 

l. 
© 

o. 

CO 

o 
"o 

T3 



on 
o 
o 



1,000 



100 



10 















Surface N/ 


linir 


g— Operating ( 


Dosts 








































































x 




















( x^ 
























\£5 






y 


/ 














s 










S 






































y 










■•^ 


/ 






















^ 




r 


















/ 


/ 




x* 


















/ 


'y 


b 


ST 


















y 


</ 


S 






i 
i 


o.sse 

Y L -7.414(X) 

, N 0.859 - 
Y s = 0.058(X) 

0.681 
Y E = 0.21 2(X) 

2,200<X<125,000 




f 














































II I III 



1,000 



10,000 100,000 

ORE, metric tons per day 

3.2.2.2. Excavation, load and haul 
BUCKET WHEEL EXCAVATION 



1,000,000 



199 

3.2. SURFACE MINING— OPERATING COSTS 

3.2.2. MINING OF ORE 

3.2.2.3. EXCAVATION, LOAD AND HAUL ORE 
DRAGLINE 

The curve for draglines covers excavating and casting a medium-digging ore from a 
dry pit into a spoil pile. The material is assumed to weigh 2.0 mt/m 3 for 
crawler (diesel -powered) draglines and 1.5 mt/m 3 for walking (electric-powered) 
draglines. 

Crawling draglines range in size from 2.0- to 20-yd 3 capacity; walking draglines, 
from 16 to 50 cubic-yard capacity. One dozer is provided for each dragline opera- 
tion for cleanup and support. 

The total daily cost for crawler draglines is the sum of the two separate cost 
curves (labor and equipment operation) and for walking draglines is the sum of the 
three separate cost curves (labor, supplies, and equipment operation) based on a 
production rate (X) in metric tons of ore per day. The curve for crawler draglines 
is valid for a production range of 2,000 to 15,000 mtpd, operating one shift per 
day; for walking draglines, the curves are valid for a production range of 15,000 
to 150,000 mtpd, operating three shifts per day. 

BASE CURVE 

(L) Labor Operating Cost (crawler dragline) (Y L CRAWLER^ = 43.884(X) ' 363 

The operating labor costs are distributed as follows: 

Small Large 

(2,000 to (10,000 to 

10,000 mtpd) 15,000 mtpd) 

Direct labor 59% 44% 

Maintenance labor 41% 56% 

The direct labor costs consist of the following typical range of personnel: 

Small Large Av salary 

(2,000 to (10,000 to per hour 

10,000 mtpd) 15,000 mtpd) (base rate) 

Dragline operator 41% 26% $18.11 

Oiler 24% 22% 15.89 

Dozer operator 25% 23% 16.33 

Utility operator 10% 29% 13.66 

Labor costs average $16.13 per worker-hour (including burden and average shift 
differential) . 



200 

(L) Labor Operating Cost (walking dragline) (Y L WALKING^ = 12 .249 (X) ' 542 
The operating labor costs are distributed as follows: 

Direct labor 62% 

Maintenance labor 38% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Dragline operator 30% $18.11 

Oiler 26% 15.89 

Dozer operator 27% 16.33 

Utility operator 17% 13.66 

Labor costs average $16.46 per worker-hour (including burden and average shift 
differential). 

(S) Supply Operating Cost (walking dragline) (Ys WALKING^ = 0.0395(X) 1 ' 003 
The supply cost consists of 100% electric power for the electric draglines. 

(E) Equipment Operating Cost (crawler dragline) (Y E CRAWLER ) = 2 .218 (X) ' 688 

The equipment cost distribution for crawler draglines is 70% for the dragline 
and 30% for support equipment consisting of 25% for crawler tractors and 5% for 
pickup trucks. 

(E) Equipment Operating Cost (walking dragline) (Y E WALKING^ = 0.533(X) ' 834 

The equipment operating cost distribution for walking draglines is 66% for the 
dragline and 34% for support equipment consisting of 31% for crawler tractors 
and 3% for pickup trucks. 

Equipment operating cost distribution for draglines and support equipment is 

Repair parts Fuel and lube Tires 

Walking draglines 94% 6% 

Crawler draglines 65% 35% 

Crawler dozers 49% 51% 

Rubber -tired support.... 8% 90% 2% 

ADJUSTMENT FACTOR 

Truck Haulage To determine the cost of a crawler dragline operation loading to 
trucks, use the values obtained from the curve for electric shovels and 
trucks. Adjust the values by increasing each curve component 25% and combine 
equipment operation and supplies curve to account for substitution of diesel 
fuel for electric power. (NOTE. — Supplies values for the electric shovels and 
trucks curve include only electric power.) 



201 

LIMITATIONS OF DRAGLINE EXCAVATION CURVES 

The cost curves for draglines are very general and are meant to represent a typical 
excavating operation. Factors that greatly affect dragline excavation costs in- 
clude the swing angle of boom and hoisting height. 



202 



Surface Mining— Operating Costs 



100,000 



o 10.000 



o 
a 

tn 

k. 
_o 

o 



to 

O 
O 



1.000 



100 



Crawler 


! 1 1 

"irnnlinfl 


CTT 




















Y L = 43.884(X)°- 363 

Y E = 2.218(X)°- 688 

2.000 <X< 15,000 


















































f^ 














fl 






















<§?/ 






















y 






















v< 


$ 






















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/ 














nf 




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y 


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A* 




/ 




Walking Dragline 

/ N 0.542 
Y L = 12.249(X) 

Y s = 0.0395(X) 1 - 003 

/ v 0.834 
. Yr= n «ixVY^ 








•«« 


r 




/ 






"" M- 


b° 




/ 


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or n 






























T 

11 

1 — i 


— i 


500 < 

1 


X< 1. 

> 


50.I 
— r 


ooo 

— «— H 



1,000 



10.000 100.000 

ORE, metric tons per day 



1.000,000 



3.2.2.3. Excavation, load and haul 
DRAGUNES 



203 



3.2. SURFACE MINING— OPERATING COSTS 

3.2.2. MINING OF ORE 

3.2.2.4. EXCAVATION, LOAD AND HAUL ORE 
DREDGING 



There are basically two kinds of dredging systems used in placer mining and in con- 
struction: mechanical, such as the bucket-line dredges, and hydraulic such as the 
suction dredges (bucket wheel and cutterhead types). 

The curves for dredging in this section cover costs for single bucket-line dredges, 
which are used in the most common method of placer excavation and recovering of 
free gold, platinum, tin, sand, and gravel. Suction dredges are mostly used in con- 
struction, in fine-sand mining and (only to a very minor extent) in placer mining; 
consequently, they are not included in the curves. 

Bucket-line dredge operations normally work continuously 9 to 12 months per year, 
depending on weather conditions. Cleanup and repairs are performed one or two 
shifts per week. The total daily cost is the sum of the three separate cost curves 
(labor, supplies and equipment operation) based on a production rate (X) in bank 
cubic meters of material dredged per day. The curves are valid for operations 
between 500 and 20,000 bank m 3 , operating three shifts per day. The curves cover 
dredging depths ranging from 10 to 50 m below the pond water level. All the cost 
components exclude mineral processing. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 302.529(X) 0,254 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



60% 
40% 



The direct labor costs consist of the following typical range of personnel: 

Small Large Av salary 

(500 to (4,000 to per hour 

4,000 m 3 ) 20,000 m 3 ) (base rate) 

Winch operator 47% 28% $21.32 

Oiler 39% 39% 17.69 

Helper 14% 33% 14.56 

Labor costs average $18.18 per worker-hour for all levels of production (in- 
cluding burden and average shift differential). 

(S) Supply Operating Cost (Ys) = 1.692(X) * 724 

The supply cost consists of 100% electric power. Typically, dredges are 
supplied with purchased power. 

(E) Equipment Operating Cost (Y E ) = 7.454(X)°* 595 

Equipment operation costs consist of 95% parts and 5% lubricants. 



204 

ADJUSTMENT FACTORS 

Depth Factor To adjust the costs for actual dredging depths and swell factors, mul 
tiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) - 0. 65+[3. 33(D) (X) -0 ' 615 ] 

Supply factor (F s ) = 7.62(D)(S)- 1 -°(X)-°* 615 

Equipment operation factor (F E ) = 7.62(D) (S)~ 1 *°(X)" * 615 
where D = actual depth, in meters, 

X - volume to be dredged, in bank cubic meters per day, 
and S = actual swell factor (the reciprocal of 1 plus the decimal 

equivalent of percent swell); the base swell factor is 0.80. 

Mineral Processing Factor To include operating cost of a mineral process plant 

mounted on the dredge (i.e., jigging or other gravity separation method), mul- 
tiply the costs obtained from the curves by the following factors: 

Minimal mineral processing: 

Labor factor (Fg MINIMAL^ = 1*51 

Supply factor (F s MINIMAL > = 1 ' 34 

Equipment operation factor (Fg MINIMAL^ = 1*37 

Some mineral processing: 

Labor factor (F L SOME^ = 1»57 

Supply factor (Fs SOME^ = 1*36 

Equipment operation factor (Fg SOME^ = 1*41 

Complex mineral processing: 

Labor factor (F^ COMPLEX ^ = 1*63 

Supply factor (F s COMPLEX ) = 1 ' 38 

Equipment operation factor (Fg COMPLEX^ = 1*45 

Power For locations where electric power can not be purchased, estimate the supply 
cost using the curve for portable power generation (section 3.2.4.6.). If the 
actual number of kilowatt-hours of power consumption is available, estimate the 
supply cost by multiplying the kilowatt-hours by the actual cost per kilowatt- 
hour. 

Multiple Dredges If the surface mine operation requires more than one dredge, es 
timate the operating costs separately for each dredge with the curves and the 
applicable factors given. The manual user should be aware that the combined 
labor cost might be slightly lower than the sum of the separate labor costs 
because of improved maintenance-labor distribution for the dredges. 



205 



Surface Mining— Operating Costs 



10,000 



>» 

a 
-a 

u 

a. 



o 
■o 



in 
O 
o 



1.000 



100 



































































































\j&* 








// 




















4 


A 


9 y 


/ 




















X 


$s 




7^ 






















4 




























?/ 
















/ 




\= 302.529(X) 

Y s = 1.692(X)°" 724 

, ,0.595 ■ 
Y £ = 7.454(X) 

500 <X< 20,000 








/ 














/ 


' 










ii i iii 



100 



1,000 10,000 

ORE, bank cubic meters per day 

3.2.2.4. Excavation, load and haul 
DREDGING 



100,000 



206 

3.2. SURFACE MINING - OPERATING COSTS 

3.2.2. MINING OF ORE 

3.2.2.5. EXCAVATION, LOAD AND HAUL ORE 
ELECTRIC SHOVEL AND TRUCKS 

The total daily cost is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a production rate (X), in metric tons of ore per 
day. The curves are valid for operations between 8,000 and 100,000 mtpd, operating 
three shifts per day. The curves include all daily operations and maintenance 
costs associated with load and haul. 

The loading units are electric shovels and diesel front-end loaders ranging in size 
from 5 to 30 yd^ } with an average of 15 yd^. Rear-dump trucks from 35 to 170 
st are the main hauling units, with the average size of all trucks at 100 st. The 
ratio of trucks to loading units averages 6:1. The curves reflect an average haul 
of 2,000 m one-way on an 8% grade from a pit 120 m in depth on wide, well- 
maintained roads. 

BASE CURVE 

(L) Labor Operating Cost (Y L ) = 2.407 (X) * 782 

The operating labor costs are distributed as follows: 

Small Large 

(8,000 to (50,000 to 

50,000 mtpd) 100,000 mtpd) 

Direct labor 61% 53% 

Maintenance labor 39% 47% 

The direct labor costs consist of the following typical range of personnel: 

Small 
(8,000 to 
50,000 mtpd) 

Shovel operator 14% 

Oiler 6% 

Dozer operator 17% 

Grader operator 5% 

Front-end loader operator.. 3% 

Truck driver 52% 

General laborer 3% 

Labor costs average $16.54 per worker-hour for all levels of production (in- 
cluding burden and average shift differential). 

(S) Supply Operating Cost (Y s ) = 0.0671(X) * 856 

The supply cost consists of 100% electric power for electric shovels. 



Large 


Av salary 


(50,000 to 


per hour 


100,000 mtpd) 


(base rate) 


8% 


$18.11 


4% 


15.89 


23% 


16.33 


7% 


16.33 


1% 


16.33 


57% 


15.89 


- 


13.66 



207 



(E) Equipment Operating Cost (Y E ) = 1 .284(X) - 882 

The equipment operating cost covers the daily operating cost for all excava- 
tion, loading, and hauling equipment and includes allowances for repair parts, 
tires, lubrication, and fuel consumption. 

Equipment operating cost distribution for an electric shovel and truck opera- 
tion is 

Shovel, electric 7% 

Rear-dump trucks 70% 

Crawler dozers 12% 

Rubber-tired support 11% 

The general equipment operating cost component distribution is: 

Repair parts Fuel & lube Tires 

Shovels, electric 96% 4% 

Rear-dump t rucks 25% 48% 27% 

Crawler dozers 50% 50% 

Rubber-tired support 35% 47% 18% 

ADJUSTMENT FACTOR 

Haulage Factor To determine costs for hauls of varying length or depth of pit, 
multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) = 0. 117(R)°- 030 (L)°- 263 

Equipment operation factor (F E ) = 0.0546(R)°* 047 (L) ' 353 
where R = depth of pit, in meters (R = 1.0 for negative or 0% 

grade from loading point), 
and L = length of haul, in meters. 



;o8 



Surface Mining— Operating Costs 



100,000 



o 10,000 

-D 



o 

a 

w 

~o 
■o 



CO 

8 1.000 



100 









L 
















Y L = 2.407(X) 

Y S = 0.0671 (X) 

0.882 
. Y E = 1.284(X) 

8,000 <X< 100,000 






































U^ 


































M?^ 


X 
















V^ 


^\£>^ 




































/' 
















































/ 
















o^ eS i 




















c^ 

















































1,000 



10,000 
ORE, metric tons per day 



100,000 



3.2.2.5. Excavation, load and haul 
ELECTRIC SHOVEL AND TRUCKS 



209 



3.2. SURFACE MINING—OPERATING COSTS 

3.2.2. MINING OF ORE 

3.2.2.6. EXCAVATION, LOAD AND HAUL ORE 

FRONT-END LOADER OR DIESEL SHOVEL AND TRUCKS 



The curve shows the cost per day for loading and hauling both common and shot 
rock. For common earth excavation, 1 bank m^ equals 2.08 mt ; for shot rock, 1 
bank m^ equals 2.61 mt. 

The curve is based on mines using front-end loaders or diesel shovels for loading 
and trucks for haulage. The loaders and shovels range in size from 1 to 6 yd-' 
and the trucks range from 10 to 35 st. The curves reflect an average haul of 750 m 
one way on an 8% grade from a pit 60 m in depth. 

The total daily cost is the sum of the two separate cost curves (labor and equip- 
ment operation) based on a production rate (X), in metric tons of ore per day. The 
curves are valid for operations between 100 and 10,000 mtpd, operating three shifts 
per day. The curves include all daily operating and maintenance costs associated 
with excavation, loading, and haulage. 

BASE CURVE 

(L) Labor Operating Cost (Y L ) = 37.003(X) - 529 

The operating labor costs are distributed as follows: 



Direct labor , 

Maintenance labor, 



70% 
30% 



The direct labor costs consist of the following typical range of personnel: 

Small Large Av salary 

(100 to (3,000 to per hour 

3,000 mtpd) 10,000 mtpd) (base rate) 

Loader/shovel crew 30% 21% $16.24 

Truck haulage crew 46% 37% 15.89 

Dozer operator 24% 17% 16.33 

Rubber-tired support 

crew - 25% 16.11 

A typical small front-end loader-diesel shovel and truck operation is based on 
a composite crew having an average rate of $16.20 per worker-hour (including 
burden and average shift differential). Large load and haul operations are 
based on a composite crew having an average rate of $16.42 per worker-hour (in- 
cluding burden and average shift differential). 



210 

(E) Equipment Operating Cost (Y E ) = 24.620(X)°* 576 

The equipment operating cost distribution for front-end loader-diesel shovel 
and truck operation is 

Loader/shovel 18% 

Rear-dump truck 43% 

Crawler dozer 23% 

Rubber-tired support 16% 

The general equipment cost component distribution is as follows: 

Repair parts Fuel and lube Tires 

Shovel, diesel 70% 30% 

Front-end loader 33% 44% 23% 

Rear-dump truck 28% 52% 20% 

Crawler dozer 51% 49% 

Rubber-tired support 28% 63% 9% 

ADJUSTMENT FACTOR 

Haulage Factor To determine costs for hauls of varying haul length or depth of 
pit, multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) = 0. 155(R)°- 030 (L) - 263 

Equipment operation factor (F E ) = 0.080(R)°* 047 (L)°* 353 
where R = depth of pit, in meters (R = 1.0 for negative or 0% 
grade from the loading point), 
and L = length of haul, in meters. 



211 



Surface Mining— Operating Costs 



10,000 



a 

■a 

L. 

© 
a. 

to 



o 

T3 



in 
o 
o 



1,000 



100 



























































^ 


* 


























H,0< 




■& 


^ 












\j 


*>^ 


&" 














^^s$ 


> K 
















■^ 


;^€^ Y 


















y 
























, N 0.529 
Y L = 37.003(X) 

. 0.576 . 














Y E 

— 


= 24.62 

00<X< 

- 


D(X) 

.10,0 


00 





100 



1,000 
ORE, metric tons per day 



10,000 



3.2.2.6. Excavation, load and haul 
FRONT-END LOADER OR DIESEL SHOVEL AND TRUCKS 



212 

3.2. SURFACE MINING— OPERATING COSTS 

3.2.2. MINING OF ORE 

3.2.2.7. EXCAVATION, LOAD AND HAUL ORE 
HYDRAULIC MINING 

The operating costs for hydraulic mining are given on a metric ton per day of ore 
slurried. The costs include the operation of the monitors and high-pressure water 
pumps. Not included in the estimates is the cost for pumping the slurry. The 
total daily cost is the sum of the three separate cost curves (labor, supplies, and 
equipment operation) based on a production rate (X), in metric tons of material 
slurried per day. The curves are valid for operations between 9,500 and 58,000 
mtpd, operating three shifts per day. 

BASE CURVES 

The base curve is for the hydraulic mining of phosphate matrix. The matrix is ex- 
cavated by draglines and deposited in "pits" where hydraulicing occurs. The hy- 
draulic monitors (also called guns, giants, or water cannons) break down the matrix 
for pumping to the processing plant. The monitors are mounted on a pit gun car 
that advances with the dragline. The base case assumes an 85% operating time and a 
water ratio of 0.67 mt of slurried ore per metric ton of water used. 

(L) Labor Operating Curve (Y L ) = 0.406 (X) * 771 

The operating labor costs are distributed as follows for all production levels: 

Direct labor 83% 

Maintenance labor 17% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Moniter operator 58% $16.78 

Moniter helper 32% 13.66 

Moniter laborer 10% 11.68 

The average wage for labor is $15.65 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 0.883(X) ' 685 

The supply cost consists of 100% electric power. 

(E) Equipment Operating Cost (Y E ) = 0. 019 (X) 0, 7 * 8 

The equipment operating cost consists of monitor repair parts and materials. 
The repair costs are divided 30% for water pumps and 70% for the monitor 
systems (hydraulic pumps, controls, and monitors). 



213 

ADJUSTMENT FACTORS 

Water Ratio Factor Each deposit to be hydraulically mined will require different 
quantities of water, and therefore, different sizes or numbers of monitors. 
The more competent (tougher) the deposit, the more water that will be re- 
quired. The measure of difficulty in slurrying the deposit is the mass ratio 
of ore excavated to water used. To adjust the base curves for different water 
requirements, multiply the costs obtained from the curves by the following 
factors: 

Labor factor (F L ) = [0.67/(R)]°* 050 

Supply factor (F s ) = [0.67/CR)] 1 * 285 

Equipment operation factor (F E ) = [0.67/(R)]°* 327 

where R = new water ratio, defined as metric ton of ore slurried per 
metric of of water used. 

For phosphate, the water ratio can vary from 0.7 to 0.3. For other applica- 
tions it can vary from 1.5 to 0.2. 

Tailings Factor Hydraulic mining can be used to excavate old tailings ponds for 
the reprocessing of the tailings. This application normally requires higher 
water pressure and larger monitors. To adjust the base curves for the hy- 
draulic mining of tailings, multiply the costs obtained from the curves by the 
following factors: 

Labor factor (F L ) = 3.32 

Supply factor (Fg) = 1.51 

Equipment operation factor (Fg) = 1.12 

The tailings adjustment is based on a water ratio of 1.22 mt of tailings 
slurried per mt of water applied. 



214 



Surface Mining— Operating Costs 



10,000 



o 1,000 
-a 



a. 

CO 

L. 

o 

"5 
■a 



to 
O 
O 



100 



10 























■ 
Y L = 0.406(X) 

, x 0.685 
" Y s = 0.883(X) 

/ N 0.748 
. Y E = 0.01 9(X) 

9,500<X< 58.000 


















































*°V^ 




































^&P 
















> 




















































































4$ 


N<*> 






















































j 













1,000 



10,000 
ORE, metric tons slurried per day 

3.2.2.7. Excavation load and haul 
HYDRAULIC MINING 



100,000 



215 
3.2. SURFACE MINING— OPERATING COSTS 
3.2.3. TRANSPORTATION 
3.2.3.1. AERIAL TRAMWAY 

The operating cost curves for aerial tramways cover the cost for tramming ore or 
waste material. The base curves are based on an aerial tramway of 3.0 km in length 
with a slope of 15°. The bulk density of trammed material is 1,442.5 kg/m 3 
(92.0 lb/ft 3 ). The total daily cost is the sum of the three separate cost curves 
(labor, supplies, and equipment operation) based on a production rate (X), in 
metric tons of material transported per day. The curves are valid for operations 
between 2,040 and 13,800 mtpd, operating three shifts per day. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 439.940(X) ' 121 

The operating labor costs are distributed as follows for all production levels: 

Direct labor 65% 

Maintenance labor 35% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Tram operator 50% $16.78 

Tram helper 41% 13.66 

Tram laborer 9% 11.68 

The average wage for labor is $15.11 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) - 1.815(X) ' 451 

The supply curve consists of 100% electric power. 

(E) Equipment Operating Cost (Y E ) = 68.358 (X) * 381 

The equipment operating cost consists of 99.4% for repair parts and materials 
and 0.6% for lubrication. The curve includes allowance for repairs on motors, 
feeder conveyor, hoppers, scales, bin, tram cars, ropes, and maintenance of 
automatic loading and unloading systems and all other pieces of equipment di- 
rectly associated with the aerial tramways. 

ADJUSTMENT FACTORS 

Aerial Tramway Length Factor The base curve is calculated for an aerial tramway 3 
km in slope length. To adjust the base curve for a different aerial tramway 
slope length, multiply the costs obtained from the base curves by the following 
factors: 



216 

Labor factor (F L ) - 0.113(L)+0.660 

Supply factor (F s ) = 0.157(0+0.528 

Equipment operation factor (F E ) = 0.226(L)+0.321 
where L = slope length, in kilometers. 

Bulk Density Factor The curve was based on material bulk density of 1,442.5 

kg/m J (92.0 lb/ft^) of material trammed (see table A-2 for average bulk den- 
sities of various materials). To adjust the base curve for a different material 
bulk density, multiply the costs obtained from the equipment operating curve by 
the following factor: 

Equipment operation factor (F E ) = 0.00003(D)+0. 957 
where D = density, in kilograms per cubic meter. 



217 



Surface Mining— Operating Costs 



10,000 



o 

O 

a. 

n 

u 
a 

"o 

•a 

H* 
CO 
O 
O 



1,000 



100 



10 













































•««rY 


^en^J 
Lab 


per 


otV 


DO 












eoy^ 


or 


































































































■>oV 


\&* , 
















" " " ■ c 


^yv; 








, 0.121 . 
Y L = 439.430(X) 

, 0.451 
Y s = 1.81 5(X) 

, N 0.381 
Y E = 68.358(X) 

2.040 <X< 13,800 




















































i ill 



1,000 10,000 100,000 

MATERIAL, metric tons transported per day 

3.2.3.1. Aerial tramway 



218 

3.2. SURFACE MINING— OPERATING COSTS 

3.2.3. TRANSPORTATION 

3.2.3.4. LONG DISTANCE RAIL HAULAGE 



The following tablulation gives the average cost, in cents per metric ton- 
kilometer, for shipping mineral materials from the Mountain-Pacific territorial 
area (including Denver, CO) to any of the five territorial areas within the conti- 
nental United States. This information is valid as of January 1984. 

AVERAGE SHIPPING COSTS FOR MINERAL MATERIALS, cents per metric ton-kilometer 



Material shipped from 
Mountain-Pacific area 



Area destination 



Mountain- 
Pacific 



Western 



South- 
western 



Southern 



f icial 


U.S. 




average 


NA 


2.33 


NA 


1.47 


NA 


3.01 


NA 


2.67 


NA 


2.66 


2.02 


2.68 


NA 


4.11 


NA 


2.74 


NA 


2.54 


NA 


1.85 


NA 


2.37 


2.25 


2.09 


NA 


2.67 


2.62 


2.34 


NA 


3.30 


2.32 


2.22 


1.47 


1.63 


1.33 


1.26 



Metallic ores 

Iron concentrates 

Copper precipitates 

Bauxite ore 

Alumina calcine 

Nonmetallic minerals* 

Crushed stone 

Sand or gravel 

Industrial sand 

Refractories 

Clay minerals 

Fertilizer minerals 

Borate, crude 

Sulfur 

Gypsum crude 

Diatomaceous earth 

Nonmetallic minerals n.e.c. .. 
Coal 



2.53 
1.47 
3.01 
2.65 
2.66 
2.94 
4.13 
2.73 
2.54 
1.83 
2.94 
3.47 
3.39 
3.82 
3.30 
4.31 
2.35 
1.87 



1.04 e 

1.04 e 

NA 

NA 

NA 

1.55 

NA 

4.75 

1.01 e 

NA 

NA 

2.65 

2.85 

3.09 

NA 

2.03 

1.84 

1.25 



2.87 e 
NA 
NA 
2.91 e 
2.87 e 
2.18 
NA 
NA 
1.68 e 
NA 
NA 
1.49 
NA 
1.99 
NA 
2.05 
1.49 
1.13 



NA 

NA 

NA 

NA 

NA 

1.96 

NA 

NA 

NA 

1.89 

1.89 

2.05 

1.89 

2.12 

NA 

2.31 

1.58 

1.30 



e Estimated. NA Not available. 

^Most nonmetallic ores, except fuels. 

■^Includes agate, crude chalk, lithium, e 
sericite, nepheline syenite, shale, well d 
unexpanded, slag, perlite, Cornwall, cryst 
ing ore, silica rock, and zeolites. 



arth or soil, coral, rubid 
rilling cores, crude topaz 
al quartz rock, quartzite, 



ium, graphite, 
, vermiculite- 
silaceous flux- 



Source: 1983 Carload Waybill Sample data collected by Dep. of Transportation, Federal 
Federal Railroad Administration, Office of Conrail. 



219 

Costs for shipping certain mineral materials from the Mountain-Pacific area to 
other areas may be not available for two reasons; first, shipments of these mater- 
ials has dropped dramatically during the last 10 yr, making evaluation of costs im- 
possible. Second, certain mineral materials are typically not shipped between two 
areas. For example, copper precipitates traditionally are never shipped out of the 
Mountain-Pacific area. 

To determine the total cost of transporting a specific mineral material, first 
select the appropriate cost from the tabulation, then multiply that value by the 
distance in kilometers the material is to be shipped, and also by the metric ton- 
nage to be shipped. Finally, divide the answer by 100 to get a value in dollars. 

Example: The cost for shipping 100,000 mt of fertilizer minerals from Denver, CO, 
to a point in the southern area 2,500 km away, is 

[(2.05tf/mt'km)x(100,000mt)x(2,500km)/(100<//$) = $5,125,000. 

The following map shows the boundaries for the different territorial areas. 

To estimate the cost for shipping mineral materials from one point to another, ir- 
respective of territorial zones, use the following equation: 

Y = [15.359(D)- * 275 ] /100 

where D = distance, in kilometers, the material is to be shipped, 
and Y = cost, in cents per metric ton -kilometer. 

The resultant answer must be multiplied by the tonnage and the distance it is 
to be shipped to get a total cost in dollars. 



220 




221 
3.2. SURFACE MINING— OPERATING COSTS 
3.2.3. TRANSPORTATION 
3.2.3.5. LONG DISTANCE SURFACE CONVEYOR 

These curves cover the cost of transporting material from the mine via a single- 
flight conveyor belt reinforced with high-strength steel and cover a capacity range 
of 15,000 to 150,000 mtpd. The material is conveyed up a 10° slope for a dis- 
tance of 1 km. The conveyor availability is 94%. Usually, the material is crushed 
or screened at the mine site before being conveyed. Screen and crusher costs are 
not included in this cost but are covered in separate sections. 

The total daily cost is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a production rate (X), in metric tons material trans- 
ported per day. The curves are valid for operations between 15,000 and 150,000 
mtpd, operating three shifts per day. The curves include all daily operating and 
maintenance costs associated with the conveyor operation. 

BASE CURVE 

(L) Labor Operating Cost (Y L ) = 7.429(X) ' 464 

The operating labor costs are distributed as follows: 

Small Large 

(15 to (50,000 to 

50,000 mtpd) 150,000 mtpd) 

Direct labor 71% 47% 

Maintenance labor 29% 53% 

The direct labor costs consist of the following typical range of personnel: 

Small Large Av salary 

(15 to (50,000 to per hour 

50,000 mtpd) 150,000 mtpd) (base rate) 

Operator 64% 54% $16.25 

Assistant operator 36% 46% 13.97 

The average wage for labor is $15.32 per worker -hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 0.068(X) 0,933 

The supply cost consists of 100% electric power. 

(E) Equipment Operating Cost (Y E ) = 2 .226(X) * 358 

The equipment operating cost consists of 95% for repair parts and 5% for lubri- 
cation for the idlers and mechanical parts. 



222 

ADJUSTMENT FACTOR 

Length and Slope Factor To determine costs for varying conveyor lengths and 

slopes, multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) = 0. 815+0. 190(L) 

Supply factor (F s ) = [0.208+0. 0794(S) ][ (L/l) ] 

Equipment operation factor (FjO = L/l 
where L = length of conveyor, in kilometers, 

and S = slope of conveyor, in degrees (S is between 0° and 15°). 

The cost for a decline conveyor is equal to that for a horizontal conveyor 
(0° slope). 



223 



Surface Mining— Operating Costs 



10,000 



D 
13 

i_ 
O 
Q. 

01 



O 

■a 

I-" 

CO 

O 
o 



1,000 



100 





















































>• 














-J? 


& ^^ 
















9 


-°53 






















































y 










































...•,nlt\^ 


L 0P« 


^H 


jn 












eayr^^- 










/ N 0.464 
Y L = 7.429(X) 

v A . N 0.933 
Y s = 0.068(X) 

, A358 
Y E = 2.226(X) 

15,000<X< 150,000 




















































I III 



10 
10,000 100,000 1,000,000 

MATERIAL, metric tons transported per day 
3.2.3.5. Long distance surface conveyor 



224 

3.2. SURFACE MINING— OPERATING COSTS 

3.2.3. TRANSPORTATION 

3.2.3.6. LONG-DISTANCE TRUCK HAULAGE 

The trucking industry has undergone intensive change since its recent deregula- 
tion. Truck transportation of mineral materials has shifted predominantly away 
from the class rate system to the bulk commodity method. This has corresponded 
with a decrease in the number of carriers and an increase in competition. Each 
carrier now determines its own rate and tariff schedules. 

Truck transportation costs as shown here cover the transportation of mineral mate- 
rials by 23-mt rear-dump trucks. The area covered includes the western contiguous 
United States. 

BASE CURVE 

The curves are based on the one-way distance (X), in kilometers, the material is 
hauled. The curves are valid for operations between 20 and 200 km. Costs deter- 
mined using these curves must be multiplied by the total tonnage to be hauled to 
obtain the final cost. 

The base curve determines costs for the transportation of each metric ton of miner- 
al materials via county and State maintained roads with less than or equal to 3% 

grades. 

(T) Truck transportation (Y T o%-3% GRADE^ = 0.227 (X)°* 715 

When the average grade of road is greater than 3%, but less than 6%, a tariff 
factor is included with the base curve equation. 

(T) Truck transportation (Y T 3%_6% GRADE^ = 0.180(X) * 909 

When the average road grade is equal to or greater than 6%, a different tariff 
factor will have to be included with the base curve equation, modifying it to 

(T) Truck transportation (Y T + 6 % GRADE^ = 0.179(X) ' 963 

ADJUSTMENT FACTORS 

Long-Term Contract The final values arrived at through multiplying the tonnage by 
any of the three curves can be reduced by 10% to 20% if long-term hauling con- 
tracts are to be used. 

Tonnage If trucks with carrying capacities greater or less than 23 mt are used, 
the cost per metric ton should be modified accordingly. 



225 



Surface Mining— Operating Costs 



c 
o 



E 

a> 
a. 

w 



o 

•a 

H-* 

CO 

o 

O 



100 



10 ■ 



1 

< 


i- - ■■ r- ■ - 

3 % Grade 
















0.715 
Y T = 0.227(X) 

> 3%, < 6% Grade 

YT = o. 18 o(x) a909 

> 6% Grade 

0.963 
Y T =0.179(X) 

20 <X< 200 


































>6 / / 










i 

1'A 




a O y y* 










/ / 


F>" ^7 
















' Sjl 








// 


tx 














// 


\fyfr 














<// 




£]• 
















» 



















10 100 

DISTANCE, kilometers one way per day 

3.2.3.6. Long distance truck haulage 



1,000 



226 

3.2. SURFACE MINING— OPERATING COSTS 

3.2.3. TRANSPORTATION 

3.2.3.8. SLURRY PIPELINE 

The operating cost curves for slurry pipeline cover the cost of transporting a 
slurry. The base curves are based on a slurry pipeline of 10 km in length with a 
lift of 150 m pumping solids at specific gravity of 4.3. The total cost is the sum 
of the three separate cost curves (labor, supplies, and equipment operation) at an 
adjusted feed rate (X), in metric tons material transported per day. The curves 
are valid for operations between 900 and 32,000 mtpd, operating three shifts per 
day. 

BASE CURVE 

(L) Labor Operating Cost (Y L ) = 13.940(X) 0#445 

The operating labor costs are distributed as follows: 

Direct labor 31% 

Maintenance labor 69% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 
per hour 
(base rate) 

Control room operator 6% $17.23 

Mill operator 49% 16.78 

Mill helper 15% 13.66 

Mill laborer 30% 11.68 

The average wage for labor is $15.11 per worker -hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 4.259 (X) 0,676 

The supply cost consists of 89% electric power and 11% lime. 

(E) Equipment Operating Cost (Y E ) = 3.652 (X) ' 458 

The equipment operating cost consists of 100% for repair parts and materials. 

ADJUSTMENT FACTORS 

Specific Gravity Factor The base curve was calculated for a slurry pipeline pump- 
ing solids with a specific gravity of 4.3. To adjust the base curve for a 
different specific gravity, multiply the base curves by the following factors: 

Supply factor (F s ) - 0.0681(S)+0.707 

Equipment operation factor (F E ) = 0.074(S)+0.683 
where S = specific gravity of the solids. 

See the table A-3 in the appendix for average specific gravities. 



227 



Slurry Pipeline Length The base curve was calculated for a slurry pipeline of 10 
km in length. To adjust for different slurry pipeline lengths, multiply the 
base curves by the following factors: 

Labor factor (F L ) = 0.0026(P)+0.974 

Supply factor (F s ) = 0. 0172 (P)+0. 828 

Equipment operation factor (F E ) = 0. 011(P)+0.890 
where P = length of pipeline, in kilometers. 

See the table A-3 in the appendix for average pipeline lengths. 

Slurry Pipeline Lift Factor The base curve was calculated for a slurry pipeline 
with a lift of 150 m. To adjust for different slurry pipeline lifts, multiply 
the base curves by the following factors: 

Supply factor (F s ) = 0.00163(L)+0.755 

Equipment operation factor (F E ) = 0.00104(L)+0.844 
where L = lift, in meters. 



228 



Surface Mining— Operating Costs 



10,000 



o 1.000 

T3 



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Y s = 4.259(X) 
Y E = 3.652(X)°' 458 


















































































9C 

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100 1,000 10,000 100,000 

MATERIAL, metric tons transported per day 

3.2.3.8. Slurry pipeline 



229 

3.2. SURFACE MINING—OPERATING COST 

3.2.4. MINE PLANT GENERAL OPERATIONS 

3.2.4.4. GENERAL ITEMS 

COMMUNICATIONS, SANITATION, HOUSEKEEPING, FIRE 
PROTECTION, AND ELECTRICAL 

This set of curves covers the cost for the general operations customarily required 
in surface mining operations. Examples of services provided are plumbing, miscel- 
laneous repairs, rough and finish carpentry, incidental jobs, tire protection, 
electrical maintenance, and general housekeeping. 

The total daily cost is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a feed rate (X), in metric tons ore and waste per 
day. The curves are valid for operations between 100 to 360,000 mtpd, operating 
three shifts per day. The curves include daily operating and maintenance costs 
associated with utility trucks, mobile cranes, fire trucks, various cleaning mate- 
rials, and electrical and plumbing supplies. 

BASE CURVE 

(L) Labor Operating Cost (Y L SMALL ) = 0.430CX) 1 - 000 

(Y L LARG? ) = 11.829(X)0.520 
The operating labor costs are distributed as follows: 

Direct labor 0% 

Maintenance labor 100% 

The labor costs consist of the following typical range of personnel: 

Small 
(100 to 
1,000 mtpd) 

Crane operator 18% 

Truck driver 17% 

Carpenter, 1st class 

Carpenter, rough 17% 

General laborer 30% 

Plumber, licensed - 

Plumber, unlicensed - 

Welder, 1st class 18% 

Janitor 

Electrician 

The average labor cost is $15.86 per worker-hour (including burden and average 
shift differential). 

The size of the work force required for this work will vary from a small crew 
of 1 or 2 workers working a fractional day to possibly three shifts of from 50 
to 60 workers per day. 



Large 


Av salary 


(1,000 to 


per hour 


360,000 mtpd) 


(base rate) 


7% 


$17.23 


6% 


15.89 


7% 


17.23 


6% 


16.33 


25% 


13.86 


5% 


18.11 


4% 


17.66 


18% 


16.78 


13% 


14.56 


9% 


16.78 



230 

(S) Supply Operating Cost (Y s SMALL> = 0.034(X) l ' 00 ° 

<*S LARGE). = 0.201(X)0-741 
The supply cost consists of 100% miscellaneous materials, such as lumber, paper 
towels, nails, cleansers, etc. 

(E) Equipment Operating Cost (Y E SMALL) = 0.050(X) l • 00 ° 

<* E LARGE) 7 1.306(X)0.528 
The general equipment cost component distribution is as follows: 

Small Large 

(100 to (1,000 to 

1,000 mtpd) 360,000 mtpd) 

Repair parts 30% 37% 

Fuel and lube 65% 57% 

Tires 5% 6% 



.31 



Surface Mining— Operating Costs 



100,000 



10,000 ■ 



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a 

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• Y S - 0.034(X) 1 - 000 
: Y E - 0.050(X) ,00 ° 
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, . 0.741 
Y s = 0.201 (X) 

Y E = 1.306(X)°- 528 - 


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ORE AND WASTE, metric tons per day 



1,000,000 



3.2.4.4. General items 

COMMUNICATIONS, SANITATIONS, HOUSEKEEPING, 

FIRE PROTECTION, AND ELECTRICAL 



232 

3.2. SURFACE MINING—OPERATING COST 
3.2.4. MINE PLANT GENERAL OPERATIONS 
3.2.4.6. PORTABLE POWER GENERATION 

This section is to be used in conjunction with section 2.2.4.2. when electric 
power is unavailable through a commercial power utility company or when it 
would be uneconomical to run power distribution facilities to the user. The 
total cost per kilowatt hour replaces the commercial Denver, CO, power rate 
used in other sections of this manual. 

These curves cover the cost of power production from a single portable power 
unit (see adjustment factor for multiple units) ranging from a small diesel 
generator with less than 100 kW output to a large gas turbine producing more 
than 20,000 kW of power. 

The total cost is expressed in terms of dollars per kilowatt hour for a spe- 
cific power output. The curves cover the cost of labor for overhauls and nor- 
mal repairs, parts for overhauls and normal repairs, and fuel and lube costs. 
The curves have been divided into three parts: the first part covering hori- 
zontal diesel generators from 18- to 400-kW output, the second part covering 
horizontal diesel generators from 400- to 2,900-kW output, and the last part 
covering gas turbine generators from 2,900- kilowatt to 23,600-kW output. 

Total cost is the sum of two separate cost curves (labor and equipment opera- 
tion) based on a specific power output rating (X), in kilowatts. The curves 
are valid for generators between 18- to 23,600-kW. The curves include all 
daily operating and maintenance costs associated with power production per 
generator unit. 

BASE CURVE 

To convert from kilovolt ampere (kV'A) demand to kilowatt power output esti- 
mate the power factor (PF). This may vary from 0.80 for electric motor cir- 
cuits to 1.00 for electric light circuits. The kilowatt output is then deter- 
mined by kV'A x PF = kW. (Power Output Determination - for surface mine 
power output (kW), see section 2.2.4.2. For underground mine and mineral pro- 
cessing plant power demand (kV'A), see sections 4.2.5.3. and 6.1.8.4.) 

(L) Labor Operating Cost (Y L 18-400 kW> = 0. 169(X) -0 - 466 

(Y L 400-2,900 kW> " 0.409(X)-0' 4 80 
<*L 2,900-23,600 kW> = 0.008(X)"0- 44 5 
The operating labor costs are distributed as follows: 

Direct labor 0% 

Maintenance labor 100% 



233 

The labor costs consist of the following typical range of personnel: 

Ag salary 
per hour 
(base rate) 
Mechanics 100% $18.11 

The average wage for labor is $18.11 per worker-hour (including burden and 
average shift differential). 

The labor curves do not contain any operating labor costs since all units oper- 
ate unattended in an automatic mode (some smaller units may not have automatic 
starting systems and would require a manual start). The only labor necessary 
is that which is required for maintenance and scheduled overhauls by mechanics. 

(E) Equipment Operation Costs (Y E 18-400 kW^ = 0. 145(X)~ * 075 

<*E 400-2,900 kW> " O' 158 ^)" - ™ 
<Y E 2,900-23,600 kW>.= 0.131(X)-0-"2 
The general equipment operating cost component distribution is as follows: 

Repair parts Fuel and lube Tires 



Horizontal diesel: 

18 to 400 kW 

400 to 2,900 kW 


18.0% 
12.0% 


73% 
79% 

75% 


9% 
9% 


Gas turbine: 
2,900 to 23,600 kW 


11% 


14% 



The parts category includes normal maintenance parts such as belts and pumps, 
and major overhaul items such as valves, injectors, brushes, and commutators. 
The fueling cost is based on $1.00/gal diesel fuel (at 7.093 lb/gal) or 
$3.20/1,000 ft 3 of natural gas with a Btu rating of 1,050 Btu's per cubic 
foot. 

ADJUSTMENT FACTORS 

Sulfur Fuels Factor If high sulfur fuels are used, multiply the labor and parts 
costs by the following factor: 

Sulfur fuels factor (F L ) = 1.333 

Power Rate If power is to be supplied by more than one unit, then the total power 
output should be divided by the number of required units to obtain the power 
output per unit (X) needed for entering the curves. 

Power Source For those cases where power is supplied to the mine and mineral pro- 
cessing plant from different sources as a result of geographic or economic con- 
straints, separate cost estimates, using this section, must be made to reflect 
the independent power outputs. This will result in different power costs for 
mines and mineral processing plants and must be accounted for separately in the 
mining and mineral processing sections of this manual. 



:34 



Surface Mining— Operating Costs 



k. 

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POWER OUTPUT, kilowatts 

3.2. 4.6. a Portable power generation 



1,000 



235 



Surface Mining— Operating Costs 



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400 <X< 2,900 




























































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POWER OUTPUT, kilowatts 

3.2.4.6. b Portable power generation 



10,000 



36 



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0.001 



0.0001 



0.00001 



1 ■ ■ ■ ■■ l 1 






Surface Mining— Opei 


'ating Costs 


, -0.445 
Y L = 0.008(X) 

-0.122 
Y E =0.131(X) 

2,900 <X< 23,600 












































































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1,000 



10,000 
POWER OUTPUT, kilowatts 



100,000 



3.2. 4.6. c Portable power generation 



237 



3.2. SURFACE MINING - OPERATING COST 
3.2.4. MINE PLANT GENERAL OPERATIONS 
3.2.4.8. STOCKPILE STORAGE FACILITIES 



Stockpile operating costs, as determined in this section, are based on metric tons 
of stockpiled material reclaimed during a two-shif t-per-day operation. The costs 
represented are only applicable for stockpiles formed and reclaimed by conveyors. 
The daily reclaim rate is typically about 67% of the stockpile's live storage capa- 
city. Total stockpile capacity is normally about 600% of the daily reclaim rate. 
For example, a coarse ore stockpile for a mill operating at 10,000 mtpd of ore has 
a live storage capacity of about 15,000 mt and a total stockpile capacity of 60,000 
mt. 

The total daily operating cost is the sum of three separate cost curves (labor, 
supplies, and equipment operation) based on the production rate (X), in metric tons 
material reclaimed from the stockpile per day. The curves are valid for operations 
between 2,000 to 200,000 mtpd, operating two shifts per day. 

BASE CURVES 

(L) Labor Operating Costs (Y L ) = 7.229 (X) * 503 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



33% 
67% 



The labor costs consist of the following typical range of personnel: 

Av salary 
per hour 
(base rate) 



Mechanic 72.0% 

Conveyor operator 14.8% 

Laborer 13.2% 



$17.99 
14.89 
13.26 



Average operating labor cost per worker-hour is $16.91 (including burden and 
average shift differential). 

(S) Supply Operating Costs (Y s ) = 0. 019 (X) ' 928 

The supply cost consists of 100% electric power. 

(E) Equipment Operating Costs (Y E ) = 4.643(X) * 524 

The equipment operating cost consists of 94% for repair and maintenance parts 
and 6% for lubrication. 



238 

ADJUSTMENT FACTOR 

Shift-Reclaim Rate If a stockpile facility is operated one shift per day, multiply 
the daily reclaim rate by two; calculate the operating costs from the base 
curves using the adjusted reclaim rate; then decrease the calculated cost by 
50% to arrive at the adjusted cost. If the facility is operated three shifts 
per day, multiply the daily reclaim rate by 0.67; calculate the operating costs 
from the base curves using the adjusted reclaim rate; then increase the calcu- 
lated cost by 50% to arrive at the adjusted cost. 



:39 



Surface Mining— Operating Costs 



10,000 



5 1.000 



o 

a. 

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k_ 
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100 



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Y L = 7.229(X) 

, J3.928 
Y s = 0.019(X) 

Y E = 4.643(X) 
























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2.C 
i 


10 


D <X 


< 20C 


).0( 


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i 



1.000 10,000 100,000 1,000,000 

MATERIAL, metric tons reclaimed per day 

3.2.4.8. Stockpile storage facilities 



240 

3.2. SURFACE MINING — OPERATING COST 

3.2.4. MINE PLANT GENERAL OPERATIONS 

3.2.4.10.1. WATER AND DRAINAGE SYSTEM 

DRAINAGE AND DISPOSAL SYSTEM 



The curves apply to the most common dewatering method, which consists of pumping 
and disposing of water out of the mine. The curves are valid for an adjustable 
pumping head and distance of 110 m and 1.184 km, respectively. 

The total daily cost is the sum of three cost curves (labor, supplies, and equip- 
ment operation) having a water-pumping volume (X), in cubic meters of water per 
day. The curves are valid for operations between 100 to 60,000 m-Vd , operating 
three shifts per day. These curves include all daily operating and maintenance 
costs associated with pumping, minor ditching, and other related items. 

BASE CURVE 

(L) Labor Operating Cost (Y L ) = 0. 149(X)°- 704 

The operating labor costs are distributed as follows: 

Direct labor 0% 

Maintenance labor 100% 

The labor costs consist of the following typical range of personnel: 

Small Large Av salary 

(100 to (10,000 to per hour 

10,000 m 3 /d) 60,000 m 3 /d) (base rate) 

Mechanic 1st class 55% 28% $16.78 

Mechanic 2nd class - 26% 15.89 

Helper 45% 46% 13.66 

The average wage for labor is $15.55 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 0.020(X)°- " 5 

The supply cost consists of 100% electric power. Power is primarily used to 
overcome the static and the friction heads associated with pumping. 

(E) Equipment Operation Cost (Y E ) = 0.352(X)°* 693 

The equipment operating cost consists of 97% minor parts and 3% lubrication 
with the daily cost related to pumping and minor pipe line, ditch, and sump 
maintenance. 



241 

ADJUSTMENT FACTORS 

Pumping Head Factor The operating cost curves are based on 100-m static head 

(lift) and 10-m friction head (in a standard new steel pipe line). For actual 
heads, multiply the costs obtained from the curves by the following factor: 

Pumping head factor (F H ) = H/110 

where H = actual head (static, friction, velocity, and fitting), 
in meters. 

For preliminary estimates of H, add to the actual static head (lift) 8 ms for 
each kilometer of new steel pipe line through which pumping is done. 

For accurate determinations of H, add to the actual static head the sum of 
friction, velocity, and fitting heads obtained from hydraulics handbooks for 
actual pipe quality, pipe diameter, and pipe line pumping distance. 

Pumping Distance Factor The curves are based on a pumping distance of 1.184 km 
(0.184 km in the mine and 1 km outside). For actual distances, multiply the 
costs obtained from the curves by the following factor: 

Pumping distance factor (F^) = D/1.184 

where D = actual pumping distance, in kilometers. 






242 



Surface Mining— Operating Costs 



10,000 



1,000 



a 

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Y s = 0.020(X) 

Y E = 0.352(X) ' 693 " 
100 <X< 60,000 ■ 


















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h- r -f -i 



100 1,000 10,000 

WATER, cubic meter per day 

3.2.4.10.1. Water and drainage system 
DRAINAGE AND DISPOSAL SYSTEM 



100,000 



243 

3.2. SURFACE MINING— OPERATING COST 

3.2.4. MINE PLANT GENERAL OPERATIONS 

3.2.4.10.2. WATER AND DRAINAGE SYSTEM 

WATER SUPPLY SYSTEM (MAKEUP WATER) 

Water is used in surface mines for dust control on haulage roads and for equipment 
cooling. The water supply system operating cost for a surface mine (and /or an ad- 
joining mineral processing plant, section 7.1.8.14.2., IC 9143) is based on daily 
water consumption. 

The total daily cost is the sum of three separate curves (labor, supplies, and 
equipment operation) for a volume (X), in cubic meters of water per day. The 
curves are valid for operations between 1,000 to 150,000 m^/d, operating three 
shifts per day. The curves cover all daily maintenance and operating costs asso- 
ciated with water wells, storage tanks, pipelines, and distribution. 

These curves are valid for a total pumping head ranging from 260 to 330 m with an 
average of 291 m, and pumping distances ranging from 3 to 53 km. 

To estimate mine water demand, multiply the daily mine capacity (ore and waste) by 
0.07. The 0.07 factor is the approximate number of cubic meters of water required 
per metric ton mined. 

For mines where slurry transportation is required and a high percentage of water is 
reclaimed (e.g., Florida phosphate mines), 0.16 to 0.23 m^/mt of material 
slurried (dry weight) could be assumed to be a valid value for (X). 

If the total daily volume (mine and processing plant makeup water) is known, the 
manual user should enter this volume in the equations given below (unless the pro- 
cessing plant is supplied with water from an independent source). The total daily 
cost may be alloted as follows-*-: 

(a) 9% to section 3.2.4.10.2. (surface mine) 

(b) 91% to section 7.1.8.14.2. (mineral processing, IC 9143). 

BASE CURVE 

(L) Labor Operating Cost (Y L ) = 1.937 (X) 0,445 

The operating labor costs are distributed as follows: 

Direct labor 0% 

Maintenance labor 100% 

L Percentages derived from Bureau of Mines IC 8285 dealing with water con- 
sumption for U.S. mines and mineral processing plants. Different percentages may 
be used if an actual breakdown of mine and mineral processing plant water con- 
sumption is known. 



244 

The labor costs consist of the following typical range of personnel: 

Small Large Av salary 

(1,000 to (13,100 to per hour 

13,000 m 3 /d) 150,000 m 3 /d) (base rate) 

Mechanic-welder ' 25% 14% $16.33 

Pipefitter 34% 39% 22.80 

Helper 41% 47% 13.66 

The average wage for labor is $16.63 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 0.045(X) °- " 7 

The supply cost consists of 100% electric power. Power is required to overcome 
the static head (well depth and lift) and pipeline head losses. 

(E) Equipment Operating Cost (Y E ) = 0.054(X)°« 86Zf 

The equipment operating cost consists of 95%for parts and 5% for lubrication 
with the daily cost related to pipe lines, pumps, and storage tanks. 

ADJUSTMENT FACTORS 

Pumping Distance Factor To correct for actual pumping distance, D, multiply the 
costs obtained from the curves by the following factor: 

Pumping distance factor (F D ) = 0.850+1 .948(D) (X) -0 * 549 
where X = daily volume, in cubic meters per day, 
and D = actual distance, in kilometers. 

Because a change in distance results in a change in friction head, also multi- 
ply the costs by the dynamic head portion (16%) of the factor, Fjj. 

Pumping Head Factor The curves are based on 244-m static head (well depth and 

lift) and a 47 m friction (dynamic) head. To adjust for actual total heads, H, 
multiply the costs obtained from the curves by the following factor: 

Pumping head factor (F H ) = H/291 

where H = the sum of static, friction, velocity, fitting, and discharge 
heads, in meters. 

Purchased Water If water is purchased, estimate the labor, supply, and equipment 
operation costs (from the delivery point to the mine and processing plant) and 
add them to the purchasing cost. 



245 



Surface Mining— Operating Costs 



10,000 



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1,000 <X< 150,000 






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1,000 10,000 100,000 

WATER, cubic meters per day 

3.2.4.10.2. Water and drainage system 
WATER SUPPLY SYSTEM (MAKEUP WATER) 



1,000,000 






246 

3.2. SURFACE MINING - OPERATING COST 

3.2.5. GENERAL EXPENSES 

ADMINISTRATIVE COSTS 



These costs include expenses incurred in the everyday operation of the plant and do 
not include general company overhead. The total daily cost is the sum of three 
cost curves (labor, supplies, and equipment operation) based on a production rate 
(X), in metric tons ore and waste per day. The curves are valid for operations be- 
tween 1,000 to 400,000 mtpd, operating three shifts per day. 

3.2.5.1. ADMINISTRATIVE SALARIES AND WAGES 

The general expense curve for administrative salaries and wages for surface mines 
is intended to cover the supervision and various other administrative functions re- 
quired for mines of varying sizes. The number of administrative (salaried) em- 
ployees varies from 4 persons working a single shift in the smaller mines to about 
100 in the larger mines. Note that the curve is based on the total tonnage moved 
in a single day, including waste and ore, and costs are per operating day of the 
mine. 

BASE CURVE 

(L) Administrative Salaries and Wages (Y L ) = 7.683(X) * 606 

The direct labor costs (excluding equipment repair labor) consist of the 
following typical range of personnel: 

Small Large Av salary 

(1,000 to (40,000 to per hour 
40,000 mtpd) 400,000 mtpd) (base rate) 
Supervision (mine 

and maintenance) 44% 41% $23.13 

Clerical (secretarial 

and accounting) 18% 20% 13.69 

Engineering 

(mining, geological) 21% 21% 18.10 

Assaying and 

metallurgical 7% 8% 14.43 

Purchasing and 

warehousing 7% 6% 14.12 

Safety, first 

aid, security 3% 4% 18.85 

The average wage for labor is $17.87 per worker-hour (including burden and 
average shift differential). 



247 

Selected median annual salaries are as follows (without burden): 

Mine superintendent $51,600 

General mine foreman 34,800 

General maintenance foreman 33, 600 

Chief electrician 40,900 

Chief engineer 49,000 

Engineers and geologists 35,900 

Chief accountant 42 , 000 

Safety director 35,900 

Director of purchases 42 , 000 

Secretaries, clerks 13,900 

ADJUSTMENT FACTOR 

Burden Factor If the burden is other than 32%, multiply the cost obtained from 
the curve by the following factor: 

Burden factor (F L ) = [ (1+B)/(1.32) ] 

where B = the known burden, expressed as a decimal. 



3.2.5.2. ADMINISTRATIVE PURCHASES 

(S) Administrative Purchases (Y s ) = 2.434(X)°* 553 

The curve for administrative purchases includes 25% for laboratory supplies; 
23% for miscellaneous fees, dues, donations, and professional and computer ser- 
vices when applicable; 21% for supplies for office, engineering, safety, and 
first aid; 12% for travel and entertainment; 11% for expenses for telephone, 
telegraph, and postage; 8% for small tools. 



3.2.5.3. ADMINISTRATIVE EQUIPMENT OPERATION 

(E) Administrative Equipment Operation (Y E ) = 1.722(X)°* 512 

This curve includes administrative equipment operation expense for vehicles 
such as sedans, pickups, forklifts, and flatbed trucks. The equipment oper- 
ating cost consists of approximately 72% for fuel, 13% for lubrication, 10% for 
repair parts, and 5% for tires. The average equipment usage is 26% of its 
available time. 






248 



Surface Mining— Operating Costs 



100,000 



10,000 



o 
-o 

i_ 
a 
a. 

2 1,000 

*o 



CO 
O 

o 



100 



10 



1,000 





































































































































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crTi*^: 






0.606" 

3.2.5.1. Y L =7.683(X) 

0.553. 

3.2.5.2. Y S =2.434(X) 

3.2.5.3. Y E =1.722(X)°' 512 " 


<^i 


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1.0 

_ .. 


OC 


) <X! 


i 400, 


00 

C ! 






10,000 100,000 1,000,000 

ORE AND WASTE, metric tons per day 

3. 2.5.1. —3. General expenses 
ADMINISTRATIVE SALARIES AND WAGES 

ADMINISTRATIVE PURCHASES 
ADMINISTRATIVE EQUIPMENT OPERATION 



249 
3.2. SURFACE MINING— OPERATING COSTS 
3.2.6. INFRASTRUCTURE 
3.2.6.3. TOWNSITE-CAMPSITE 

CAMPSITE 

Where conditions such as remote location or seasonal operation require a single- 
status campsite (i.e., room, board, and recreation facility), the daily operating 
cost should be derived from the following base cost curve. Today a caterer is 
usually employed to provide board, housekeeping, and recreation supervision. Heat, 
lights, garbage disposal, and plant maintenance are usually provided by the owner. 

BASE CURVE 

The total daily cost is derived from the supply curve based on the total number 
of persons who occupy the campsite (X). The curve is valid for campsites occupied 
by 20 to 1,000 persons. All persons receive both room and board. 



(S) Supply Operating Cost (Y s ) = 37.143CX) ' 897 



Small Large 

(20 to (450 to 

450 persons) 1,000 persons) 

Board 61.5% 59.0% 

Housekeeping and recreation 23.9% 23.0% 

Heat 6.4% 9.0% 

Light 2.4% 3.4% 

Maintenance 5.8% 5.6% 

If the number of persons requiring board varies from the number of persons re- 
quiring room, use the following equation: 

(S) Supply Operating Cost (Y s ) = [37.143(X) ' 897 ] [0.60(B/R)+0.40(R)] 

where B = number of persons requiring board only, 
and R = number of persons requiring room only. 

These curves are based on a caterer who provides all necessary personnel for food 
service, housekeeping, distribution and collection of mail, monitoring recreation, 
etc., and all necessary supplies, such as pots, pans, dishes, silverware, sheets, 
pillow cases, blankets, waste cans, recreation supplies, janitorial supplies, food, 
etc. The evaluator must add the cost for local, State, or Federal taxes where re- 
quired. 

ADJUSTMENT FACTORS 

Owner-Operator Factor When the facility is owner-operated rather than catered, 
multiply the cost obtained from the curve by the following factor: 

Owner-operator factor (F(P = 0.93 



250 

Diesel Power Factor When the electric power is provided by a diesel-electric system 
rather than a power line grid, multiply the cost obtained from the curve by the 
following factor: 

Diesel power factor (Fq) =1.04 

TRAILER COURT 

Where conditions such as remote location or lack of available housing require in- 
stallation of a family trailer court complete with utilities, laundromat, recrea- 
tion facilities, blacktop driveway, and possibly swimming pool, the daily operating 
cost should be derived from the following two curves. The total daily cost is de- 
rived from the supply curve, based on the total number of trailer spaces, (X), re- 
quired. The curve is valid for trailer courts with 20 to 1,000 units. 

BASE CURVE 

The curves are based on trailer and facility maintenance, insurance, casualty 
insurance, supervisory and worker wages, plus overhead, heat, and lights. 

(S) Supply Operating Cost (Y s pREE^ = 49. 514(X) * 590 

Company-owned mobile homes, spaces, and facilities where the trailers and 
spaces are free to supervisors and workers. The company pays all operating 
costs on the facility. 

(S) Supply Operating Cost (Y s RENTED^ = 1,676.049 (X) -0 ' 716 

Company-owned mobile homes, spaces, and facilities where the trailers and 
spaces are rented to supervisors and workers. The company pays for any loss on 
the facility. 

ADJUSTMENT FACTORS 

Swimming Pool Factor When the trailer court does not provide a swimming pool, 
multiply the curve (Yg FREE^ by the following factor: 

Swimming pool factor (Fp free) = 0*82 

When the spaces and trailers are rented and the trailer court has 52 or more 
units it will show a profit. If there are less than 52 units multiply the 
curve (Ys RENTED^* by the following factor: 

Swimming pool factor (Fp RENTED^ = 0.05 

Trailer Space Rental Factor When the occupants rent trailer space for their own 
trailers, multiply the curve (Ys FREE^ by the following factor: 

Trailer space rental factor (Fr free) = 0*36 



251 

PERMANENT HOUSING 

Company totally owned and operated townsites are decreasing in number because of 1 
their high cost and persistent social problems. The trend seem to be toward small 
family housing facilities combined with an existing nearby city. 

Large townsite permanent housing: 

Today, the military appears to be the greatest user of this type of facility. 
The Air Force provides housing to its officers and enlisted personnel. The 
Government pays for housing and facility maintenance, all utilities, supervi- 
sor, and worker labor, etc. The average operating costs for 1983 were: 

McCord Air Base - 993 units: $6.66 per day per unit 
Fairchild Air Base - 1,580 units: $6.93 per day per unit 

Small townsite permanent housing: 

These facilities are generally rented to their occupants at a modest fee with 
the company paying for the general maintenance, insurance, and taxes. Rent is 
applied to the capital investment. A new housing facility (175 family units) 
in the western U.S., cost the company $0.98 per day per unit to maintain. 

BASE CURVE 

The total daily cost is derived from the supply curve based on the total number of 
housing units, (X), required. The curve is valid for 140 to 1,900 housing units. 






(S) Supply Operating Cost (Y s ) = 0.008(X) * 948 



■> 52 



100,000 



o 10,000 
-o 



o 
a. 

n 

k. 
jo 

"o 

■D 

I-* 
CO 

8 1.000 



100 









Surface h 


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y 
































■a* 














































s 


s 


































S 






































0.897 
Y s = 37.1 43(X) 

20 <X< 1,000 
















I III 



10 



100 
RESIDENTS, total number of persons 



1,000 



3.2.6. 3.a Townsite -Campsite 
CAMPSITE 



253 



Surface Mining— Operating Costs 



1 0.000 



o 

T3 

u 
<D 

a 
m 



o 

-a 

CO 

o 
o 



1,000 



100 



10 



■ 




















Free 

, x 0.590 
_ Y s = 49.51 4(X) 

20 <X< 1,000 


















































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S^ 


































































































s 


















V 


< 


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Rented 

, -0.716 
Y S =1,676.049(X) 

20 <X< 1,000 






<^y^ 




















1 I ! 



10 



100 
TRAILERS, total number of spaces 



1,000 



3.2.6. 3. b Townsite-Campsite 
TRAILER COURT 



2 54 



Surface Mining-Operating Costs 



100 



o 

© 
a 

in 

L. 

•a 



01 

o 
o 



10 



0.1 





























































































y 




















X 


































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<b 


iy 




































s 
















































































0.948 
Y s = 0.008(X) 

140 <X< 1,900 














t~ 



100 



1,000 
UNITS, total number of houses 

3. 2.6.3. c Townsite-Campsite 
PERMANENT HOUSING 



10,000 



255 

3.2. SURFACE MINING— OPERATING COSTS 

3.2.6. INFRASTRUCTURE 

3.2.6.4.1. WASTE WATER TREATMENT 
CLARIFICATION 

This operation is a solids-contact clarifier used for water clarification by pre- 
cipitation and/or coagulation. This cost curve is for removal of suspended solids 
formed after final neutralization of out-of-pipe effluent. The curve includes all 
principal costs associated with the operation of the unit. It does not include 
costs for sludge removal. The unit can selectively or simultaneously remove tur- 
bidity, color, organic matter, manganese, iron, alkalinity, taste, and odor. 

The total daily cost is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a tank diameter (X) , in meters. The curves are valid 
for tank diameters between 2.74 to 45.72 m (cross-sectional area ranging from 5.9 
to 1,642 m^ ) , operating three shifts per day. Costs are based on an overflow rate 
of 0.377 (L/s)/m 2 . 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 38. 931(X )°* 119 

The operating labor costs are distributed as follows: 

Direct labor 100% 

Maintenance labor 0% 

The labor costs consist of the following typical range of personnel: 

Small Large Av salary 

(5.72 to (75 to per hour 

75 m) 1 ,661 m) (base rate) 

Laborer 60% 54% $13.66 

Laboratory 40% 46% 15.89 

The average labor cost per worker-hour is $14.43 (including burden and average 
shift differential). 

(S) Supply Operating Cost (Y s ) = 1 .083(X)°- 633 

The supply curve consists of electric power and maintenance supplies. 

Small Large 

(5.72 to (75 to 

75 m) 1,661 m) 

Electric 60% 34% 

Maintenance 40% 66% 

(E) Equipment Operating Cost (Y E ) = 0. 505(X) X - 064 

The equipment operating cost consists of 100% for repair parts and covers the 
daily operation cost for all clarification equipment. 



256 

ADJUSTMENT FACTORS 

FloccuLant Factor Normally, additional flocculants are not needed in the mine 

waste water treatment after neutralization. However, if polymers are needed or 
used, add the following factor to the supply cost obtained from the curve: 

Supply factor (F s ) = 0.334(D) 1 ' 812 

where D = clarifier tank diameter, in meters. 

The polymer is based on a standard dosage of 1.5 mg/L influent and an average 
polymer cost of t>2.10/lb. 



:57 



100 



O 

-a 

L. 

a. 

10 

"o 



CO 
O 
O 



10 









Surface Min 


'ng-Operating Costs 






























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Ol 






















/ 


/ 
















£ 






































4 
















^ 














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, N 0-119 

Y L = 38.931 (X) 

, 0.633 
Y S = 1.083(X) 

, J. 064 - 
Y E = 0.505(X) 

2.7 <X< 46.0 




/? 












/ 












I I ! I 



10 



100 



TANK DIAMETER, meters 



3.2.6.4.1. Wastewater treatment 
CLARIFICATION 



258 

3.2. SURFACE MINING - OPERATING COSTS 

3.2.6. INFRASTRUCTURE 

3.2.6.4.2. WASTE WATER TREATMENT 
NEUTRALIZATION 

The Environmental Protection Agency's publication EPA-600/2-82-00M "Treatability 
Manual, Vol. IV, Cost Estimating," April 1983, was the source of cost development. 
One is referred to that manual if further detail in neutralization costs is needed. 
Additionally, other waste water treatment methods are costed in the EPA manual. 

The operating cost curves are used when neutralization of waste water effluent (out- 
of-pipe) is required. The basic design variable is waste water flow. It is assumed 
that flow equalization is provided by a tailings pond. The costs apply to the neu- 
tralization of either acidic or basic waste water streams originating from mine, 
mill, or combined mine and mill after it flows out-of-pipe from the central impound- 
ment pond. In most mining operations further waste water treatment costs are not 
required. The system consists of chemical addition and two-stage neutralization 
tanks. It is assumed that pH and suspended-dissolved solid content of influent to 
the system will be unknown at this level of costing. Basis of design uses a stan- 
dard dosage of 100 mg/L lime and 100 mg/L acid to achieve a pH of 7.0 over a pH 
range of 6.5 to 8.0. 

BASE CURVES 

The total daily cost is the sum of three cost curves (labor, supplies, and equipment 
operation) based on the waste water flow rate (X), in liters of effluent to be 
treated per second per day. The curves are valid for operations between 0.001 and 
876 L/s (22.8 to 20 million gal/d), operating three shifts per day. The curves in- 
clude all costs associated with the operation of a neutralization system such as 
labor, lime, acid, power, service water, and laboratory expenses. 

(L) Labor Operating Costs (Y L ) = 84.85(X) * 000 

The operating labor costs are distributed as follows: 

Direct labor 100% 

Maintenance labor 0% 

The labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Laborer 89% $15.80 

Laboratory 11% 15.80 

The average labor cost per worker-hour is $15.80 (including burden and average 
shift differential). 



259 



(S) Supply Operating Costs (Y s 0.001-8.76 L/s> = 24. 13(X) - 950 

CY S 8.76-876 L/s> = 21 .282(X)0-997 
The supply costs consists of electric power, water, and chemicals and lime in 
the following proportions: 

Small Large 

(0.001 to (8.76 to 

8.76 L/s) 876 L/s) 

Electric power 3% 2% 

Water 80% 89% 

Chemicals and lime 17% 9% 

(E) Equipment Operating Costs (Y E 001-8 76 L/s) = 8.44(X) - 099 

(Y E 8 ;.76-876 L/s) = 1.801<X) - 563 
The equipment operating cost consists of 100% for repair parts and covers the 
daily operation cost for all neutralization equipment. 



260 



Surface Mining— Operating Costs 



1,000 



o 

i_ 
Q. 
0) 

"5 

■a 



on 
O 
O 



100 



10 



0.1 



0.01 







































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Laboi 










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Y L = 84.a5(X) a00 ° - 

v / 0.950 . 
Y S = 24.1 3(X) 

0.099 " 
Y E = 8.44(X) 


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0.001 0.01 0.1 1 

FLOW RATE, liters effluent treated per second 

3.2.6.4.2.a Wastewater treatment 
NEUTRALIZATION 



10 



261 



Surface Mining— Operating Costs 



100,000 



10,000 - 



o 
■a 

o 1.000 
a. 

n 

a 

"o 
■a 



100 



CO 

o 
o 



10 



I 1 I ! I 




















0.000 

- Y L = 84.85(X) 

, N 0.997 
■ Y s = 21.282(X) 

, x 0.563 

- Y E = 1.801 (X) 

8.76 <X< 876 






























































































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10 100 1,000 

FLOW RATE, liters effluent treated per second 

3.2.6. 4.2.b Wastewater treatment 
NEUTRALIZATION 



262 

3.2. SURFACE MINING— OPERATING COST 

3.2.7. RESTORATION DURING PRODUCTION 

Mine restoration is the process of initiating and accelerating the natural contin- 
uous trend toward recovery (stabilization, etc.), the type of environment (desert, 
flatland, grasslands, mountains, etc.) and the restoration requirements by law in 
any given State (which range from none to very strict). Some states require per- 
mits prior to disturbing the ground surface. Typically, the permit specifies that 
the area must be reclaimed, hectare for hectare, to a use similar to the prior use 
or other beneficial use. Most restoration activities for mines include regrading 
and leveling plant sites (and revegetation of the disturbed area) but do not in- 
clude backfilling (in most cases backfilling is not required by law). 

If backfilling is employed in the restoration plan use the Excavation, Load and 
Haul Overburden and Waste section (3.2.1.4.), to obtain backfilling cost. The re- 
vegetation cost varies greatly depending on the method used (hand or machinery), 
materials used, type of seeds or plants, fertilizer, mulch, chemicals (such as lime 
for reducing acidity), and whether irrigation is necessary. Climate and ground 
slope are factors that determine the type and, therefore, the costs of restora- 
tion. The costs given in the following tabulation are representative costs for a 
specific restoration task. The actual cost could range higher or lower than the 
cost given in the table. 

Where restoration methods use motorized equipment, the cost components (from the 
Industrial Chemicals Index) are the following: 40% for labor, 40% for equipment 
operation, and 20% for supplies (fertilizer, seed, mulch, etc.). The cost compo- 
nents for equipment operation are 65% for fuel and lubrication, 25% for repair 
parts, and 10% for tires. If restoration work is accomplished manually, then the 
cost components (from the Industrial Chemicals Index) are 60% for labor and 40% for 
supplies. 



263 



COST COMPARISONS OF RESTORATION METHODS 



Cost per 
hectare 



Remarks 



SPECIFIC RESTORATION WORK (INDEPE NDENT OF 

$1,000- 



CLIMATE OR GEOGRAPHY) 



Revegetation on steep slope — roadside 
slopes, tailing slopes, or waste dump 1,500 
slopes, using hydroseeder with fiber 
mulch. 

Transplanting trees or shrubs by hand 5,000 
on moderate to steep slopes. 

Sand and gravel restoration, includes 3,000 

placers; leveling, grading, topsoiling, 

reseeding. 
Annual maintenance (fertilizers added 160 

for above) . 
Restoration of borrow pit - backfilling 400- None. 

leveling and reseeding. 600 



Based on using 18 kg/ha of seed, 
73 kg/ha of fertilizer, and ex- 
penses to use a boom crane, 
pickup truck, 2 equipment oper- 
ators, and a swamper. 

Assume 2,500 trees hand 
planted per hectare at $2 per 
tree or shrub. 

Based on a typical sand-and- 
gravel operation near Denver, 
CO. 

Cost for applying fertilizer. 



■.:; :--;i! ] i-iICH A.LTTT'ji ; (MOUNT AINOUS ) TERRAIN 

$4,000 



Regrading for adequate drainage 
to minimize erosion, seedbed 
preparation, and reseeding (in- 
cluding transplanting trees and 
shrubs) . 

Purchasing-applying fertilizer-- 
application cost for 1 yr. If 
application is on area where at 
least 30-cm depth of topsoil has 
been added, only 1 year's appli- 
cation needed. If topsoil has 
not been added, then as many as 
4 applications may be required 
over a 6- to 8-year period. 

Using $2.30/m- J cost of stockpil- 
ing soil to cover a disturbed 
area to a depth of 30 cm. As- 
sume topsoil moved and emplaced 
once. If moved, then stored and 
moved again to final placement, 
cost could double). 



Regrading and reseeding - not including 
topsoiling. 



Maintenance (added to regrading cost) 



130 



Topsoil removal not necessary for access 
to ore body--added to regrading cost 
(if necessary to remove topsoil to gain 
access to ore body, then only $l,300/ha 
of this cost would be attributed to 
restoration cost). 



7,000 



RESTORATION IN ARID AND SEMIARID LANDS 



Soil added 



$5,000 Required to achieve restoration 
on only the most severely dis- 
turbed sites. Generally serves 
to accelerate the rate of a- 
chieving permanent self- 

sustaining vegetation. 



264 



COST COMPARISONS OF RESTORATION METHODS— Cont inued 



Cost per 
hectare 



Remarks 



RESTORATION IN ARID AND SEMIARID LANDS — Cont inued 

Seeding and irrigation in arid climate $12 ,000 



on tailings dams, waste dump sites, 
road slopes. 



Seed and fertilizer broadcast on surface 
--no soil coverage or mulch. 

Hydromulching with 680 kg wood fiber per 
hectare plus seed and fertilizer. 



15,000 



700 



1,900- 
2,500 



Straw or hay broadcast with straw blower 2,500 
on surface at 3,400 kg/ha. 



Irrigation system cost (sprinkler 
or drip tube) is estimated at 
$8,000/ha. Water assumed to be 
pumped on site at annual rate of 
12,000 to 18,000 m 3 /ha at $63 
to $67 per 1,000 m 3 of water. 

Minimum slope where seed will 
cover naturally with soil. Seed 
broadcast manually. 

Most common southwestern U.S. hy- 
dromulch mix; will hold seed and 
fertilizer in place on steep and 
smooth slopes. 

Very effective as energy absorber 
and mulch. Not used on steep 
slopes. Cost increase signifi- 
cant if slopes over 14 m from 
access . 



265 

4.1. UNDERGROUND MINING— CAPITAL COSTS 
4.1.1. EXPLORATION 

Exploration costs and data were partly derived from mining and exploration companies 
and contractors. However, credit is given to Mr. William Salisbury of Salisbury and 
Dietz, Spokane, WA, for his generous supply of data and overall review. 

Exploration can be defined as all the activities and evaluations performed in order 
to locate and define mineral deposits for the purpose of extraction now or in the 
future. 

Exploration covers a wide range of activities from that of a prospector searching 
for mineral outcrops to the sophisticated equipment in ground or airborne surveys 
attempting to detect hidden mineral deposits, followed by extensive sampling and 
logging of excavations or drilling programs. 

An organized exploration program consists of the four following principal stages: 

Stage 1. Regional Appraisal 

Stage 2. Detailed Reconnaissance of Favorable Areas 
Stage 3. Detailed Surface Appraisal of Target Areas 
Stage 4. Detailed Three-Dimensional Sampling and 
Preliminary Evaluation 

Costs in this section are directed to those related to exploration activity at the 
level of "project" status. The point where a company's general exploration program 
is elevated to "project" status will differ from company to company (or project), 
but in general this transition is marked by such activity as land purchase or lease, 
claim staking, geophysical and geological surveys, drilling, etc. In any case, ex- 
ploration expenditures and efforts increase dramatically over a small unit area. 
Labor costs are the major cost component and drilling is most often the principal 
cost item for a project. Exploration costs will range widely depending on methods 
used, size of project, commodity sought, remoteness, terrain and vegetation condi- 
tions, weather, geologic complexity, etc. 

Detailed Surface Appraisal of Target Areas 

If the results of the detailed reconnaissance are favorable, they may indicate 
areas ranging in size from 3 to 130 km^ where more detailed in- vestigation is 
warranted. This stage of investigation would include all of the ground survey tech- 
niques or methods which were used in stage 2, but with more refinement, closer in- 
tervals, and greater detail. The methods or techniques used might include addition- 
al outcrop examination, geologic mapping, boulder tracking, rock and specialized 
sampling, and possibly assaying. In addition, the various ground geophysical stud- 
ies including gravity, magnetic, radiometric, seismic, resistivity, self -potential, 
and induced polarization would be made. Possibly, this stage would also warrant 
some trench excavation and drilling, plus field and laboratory tests. Unit costs 
for the various techniques or methods are given in the exploration tabulation. 



266 

Detailed Three-Dimensional Sampling and Preliminary Evaluation 

A detailed three-dimensional survey or sampling of a target area ranging in size 
from 1 to 25 km^ or more would be made if it appeared that an economical ore body 
existed. The sampling or survey would be made to determine boundaries or limits and 
depth, size, shape, mineralization, and grade. This stage of exploration would pro- 
bably include an extensive drilling program together with borehole logging and geo- 
logic mapping. Excavation of test trenches, shafts, and adits might also be includ- 
ed. Samples would be taken, field and laboratory tests would be conducted, and as- 
says would be made to permit econ- omic evaluations to be made. The cost of the 
stage 4 exploration could vary greatly depending on location, accessibility, ground 
cover, type of deposit, and the extent of a drilling or excavation program. Unit 
costs for various techniques or methods are given in the following tabulation. 



Exploration 



267 



Description 



Manpower 



ManhoursAmit liiit Cbst 



Remarks 



Geological Methods: 
Surface geological 
napping 



Geological inference. 



Geophysical Methods: 
Gravitational survey. 



2 to 4 men 3 to 12/km 2 £75 to fc275/km 2 



$275 to fc760/d 



1 geophysicist 
2- to 3-man 
survey crew 



12 to 50/ 
profile km 



$380 to $1100/ 
profile km 



Rate of production and cost depend 
on terrain, ground cover, complexity 
of geology, detail required, and 
scale of mapping. 

A qualified geologist interpret data 
shown on maps, photographs, or field 
investigations. 



Production varies from a few to 50 
readings per day depending on type 
of equipment. Production also de- 
pends on station spacing and ter- 
rain. Surveying is the costly phase 
of method. 



Magnetic Survey: 
Airborne 



1 to 3 men 



Ground 2 to 3 men 



4 to 6/ 
profile km 



$50 to $90/line 
km plus fc to 
$16 /line km for 
interpretation 



$160 to $180/ 
line km 

$2.60 to fe.90/ 
grid point 



High sensitivity, helicopter, 
magnetic, electromagnetic, radio- 
activity surveys, etc., are usually 
taken concurrently from aircraft at 
400 to 800 line km/d. Production 
and cost depend on type of aircraft 
equipment, etc. 

Production depends on precision, 
spacing, of readings and type of 
readings, type of equipment, 
weather, terrain, and mode of 
travel. 



268 



Exploration — Continued 



rescript! on Manpower Manhours /unit Unit Oast Remarks 

Seismic survey: 

0- 150-m depth 2 to 7 men 1 to 4/depth $35 to $110/depth Ibrtable equipment with 5 to 15 

determination determination determinations per day. 

150-m depth 15 to 20 men 5 to 10/depth $180 to $270/depth Vibroseis equipment with 3 to 15 

determination determination depth determinations per day. 

\fery low frequency 2 men $315 to $385/line Includes about $40/line km for 

km. interpretation. 

Resistivity Survey 1 geophysicist 2 to 3/depth $57 to $114/depth None. 

1 to 4 asst. determination determination 

Electromagnetic Survey: 

Airborne Usually taken concurrently with 

magnetic and radioactivity surveys 
from 1 aircraft at 400 line km or 
80 km 2 /d. 

Ground 1 to 4 men 1 to 6 /line $163 to $390/ Readings taken at 25- 50-m intervals 

km line km covering 5 to 10 km/d; dependent on 

on type of equipment, terrain, and 
mode of travel. 

EMP 3 men $4000 /loop Rarameters: Approximately 60-m by 

$1290/line km 120-m grid spacing; 430-m by 850-m 
&900/km 2 loop; 10 lines, 15 stations Aine ; 
10.3 km 2 costs include inter- 
pretation. 



269 



Exploration — Continued 



DescrlptloQ Manpower 

Geochemical methods: 
Stream sediment 1 man 
sampling 

Reconnaissance soil 1 man 
sampling 

Hmis sampling 

Biological sampling. 

Water samples 

Test pit: 

Trenching 

Earth 1 to 3 men 

Do. 

Rock 3 men 

Do. 



Manhours/unit Unit Cost 



Remarks 



$19 to $38 /km^ Depends on sampling Interval ter- 
rain, access, and mode of travel. 

0.05 to 0.20/ $11 to $24 /sample 50 to 200 samples /d depending on 
sample access, terrain, ground cover, and 

geologic complexity. 

$28 to $55 /sample None. 

$28 to $55/sample Do. 

$50 to $95 /sample Do. 



0.1 to 2.0ym3 
0.2 to 3.5An 3 



Depends on whether hand or equipment 
excavated. 

$2 to $55/fa3 



$11 to $100/fa 3 



270 



Helicopter cost and comparison 



Manufacturer 


Approx 
cost/hi 


Passenger 
capacity^ 


Effective 


payload 


Cruise 


and model 


(h.o.g.e. 3 ) , kg 


Speed , 
mph 


Range , 




Sea level 2700m 


km 


Hiller-Soloy 12-J... 

Bell-Soloy 47G3 

Bell 206B 


$ 300 
305 
380 
360 
410 
575 
1,040 
1,855 


2 
2 
4 
4 
4 
4 

15 


450 

500 

450 

570 

610 

1,000 

2,100 

3,600 


360 
360 
320 
360 
550 
900 
1,100 
2,500 


145 
145 
195 
240 
255 
175 
195 
280 


240 
350 
550 


Hughes 500C 


560 


Hughes 500D 


480 


SUD Allouette Lama.. 
Bell 205 


480 
210 


Bell 214 


560 



^Charter rate, includes fuel. 
^Without pilot. 

3 Hovering out of ground effect. 
^Varies, maximum capacity given. 

Source: Modified and updated from William G. Salisbury. 



Analytic costs 



Assay 



Geochemical 



Assay 



Geochemical 



$8.74 

8.98 

10.36 

10.12 

12.10 

7.59 

5.04 

7.75 

5.46 

4.96 

4.29 

NAp 

9.07 

5.94 



Aluminum 

An t imony 

Arsenic 

Barium 

Beryl lium 

Bismuth 

Cadmium 

Chromium 

Cobalt 

Copper 

Copper oxide 

Fluorine 

Gold and silver. . . 

Iron 

NAp Not applicable. 

NOTE — Sample preparation costs are assay--$1.85 and geochemical — $1.15. Semi- 
quantitative spectrographic analysis for 30 to 40 elements is $23.32. 



NAp 

$4.12 

4.32 

4.78 

NAp 
3.50 
2.46 
4.28 
2.15 
2.15 

NAp 
5.73 

NAp 
2.90 



Lead 

Lithium. . . . 
Magnesium. . 
Manganese. . 
Mercury. .. . 
Molybdenum. 

Nickel 

Platinum. . . 
Potassium. . 

Silica 

Silver 

Tungsten. . . 
Zinc 



$4.96 
7.42 
9.11 
6.60 
9.75 
5.98 
4.96 

27.72 
8.41 

10.36 
8.45 

11.02 
4.55 



$2.15 

NAp 

3.30 

3.12 

4.22 

2.43 

2.15 

NAp 

NAp 

NAp 

2.81 

5.72 

2.15 



Drill capacities (maximum, under ideal conditions) 



271 







- HOLE LENGTH, METERS 


(feet) - 




Approx 


Drill Model 


EW 


AW 


BW 


NW (Nc) 


HW 


av weight 
lb (kg) 


Truck mounted 














-hauled: 














Joy 22 


NAp 


NAp 


900 (3000) 


600 (2000) 


NAp 


4000 (1800) 




270 (890) 


220 (720) 


NAp 


NAp 


NAp 


1075 (490) 




NAp 


520 (1700) 1 


430 (1400) 1 


340 (1100) 1 


200 (700) ! 


3300 (1500) 




NAp 


940 (3100) 1 


700 (2400) l 


580 (1900) 1 


370 (1200) 1 


3300 (1500) 




NAp 


1500 (5000) l 


1200 (3940) 1 


936 (3070) 1 


716 (2350) 1 


5100 (2300) 


Diarond Drill DDC 


NAp 


550 (1800) 


500 (1650) 


300 (1000) 


NAp 


1900 (860) 


CP 670 Rotary. . . . 


NAp 


NAp 


NAp 


NAp 


+300 2 (+1000) 2 




Helicopter 














transportable : 














Hydraulic Winkle.. 


NAp 


300 3 (1000) 3 


240 4 (800) 4 


44-30 5 (100) 5 


NAp 


550 (250) 




NAp 


370 (1200) 


NAp 


NAp 


NAp 


2500 (1100) 


Acker Mark III. . . . 


NAp 


520 (1700) 1 


430 (1400) 1 


340 (1100) 1 


NAp 


2600 (1200) 




NAp 


550 (1800) 


495 (1625) 


380 (1250) 


340 (1100) 


2860 (1300) 


Ingersol Rand T4W. 


NAp 


NAp 


NAp 


NAp 


760 2 (2500) 2 





NAp Not applicable. 

^Q Series wire line. 

2 Rated capacity. 

3 IEX. 

4 IAX. 

5bW. 



NOTE: Figures are maximum capacities under ideal conditions. 

Source: Data from William G. Salisbury, Salisbury & Dietz Inc., as collected from literature and as provided 

by contractors, May 1980. 



272 

DRILLING 

CORE DRILLING 

Core drilling varies from nonexistent to extensive, depending on many unknown fac- 
tors. Core drilling is performed on centers varying from 30- to 245 m and to 
varying depths. The following tabulation gives the average range of costs for core 
dia- meter and depth of hole for drilling medium hard rocks. Costs could be higher 
or lower depending on hardness, location, access, and weather conditions. 



Drilling cost, dollars per meter 



Core 


Drilling depth range, m 


Size 


Diam, cm 


0-150 


150-300 


300-450 


450-600 


p Q; 

NC 1 

NX 1 

BX 

AX 

EX 


8.49 
6.10 
5.40 
4.13 
2.86 
2.22 


$100-$115 
62- 79 
59- 71 
49- 64 
43- 57 
36- 52 


$125-fcl38 
69- 85 
62- 75 
52- 69 
49- 62 
43- 59 


NAp 

$90 

80 

75 

70 

NAp 


NAp 

$100 

90 

85 

80 

NAp 



NAp Not applicable. 

^Primarily surface exploration core sizes. 

Subcontractor Factor If drilling is accomplished by a drilling subcontractor, 
multiply cost by 1.10 to compensate for subcontractor's markup. 



ROTARY DRILLING 

Conventional $125-fcl85/h; $7-fc36/m. 

Reverse circulation $125-$185/h; $ll-fc39/m. 

Mobilization-demobilization... $1, 500-$2 ,500 and $1. 90-&2. 20/km. 

PERCUSSION DRILLING 

Downhole hammer $40-J>59/m. 

Mobilization-demobilization... $1,500-^2,500 and $1.90-^2.20 /km. 

CAUTION: Drilling costs are impacted significantly by demand. Costs correlate 
poorly with industrial inflation factors. Base costs here are representative of 
January 1984 costs, a time of low drilling demand and very depressed prices for 
drilling contractors. 



Contract downhole logging costs — survey changes 



273 



Portable gamma ray rental 

Truck gamma ray surface profile resistivity: 

Daily 

Weekly 

Monthly 

Directional survey 



Day 



NAp 

$420 
NAp 
NAp 
NAp 



Cost per 



Week 



NAp 

NAp 

$1,588 

NAp 

NAp 



Month 



$2,600 

NAp 

NAp 

4,646 

735 



Plus cost 
per meter 



NAp 

$0.69 
0.36 
0.36 
0.15 



^Month minimum. 

Loss of equipment charge--Contractee is charged for replacement value of 
equipment lost. Probes may cost $3,200 and cable may cost $2.30/m. 

Mobilization-demobilization charge - $50/d/person; $0.90/mile over 100 mile/d 
mobil izat ion. 

GAS— MILEAGE: 

Assume on average, 80 mi/d for 18 days going to field project. 

Total miles = 1,440 miles. 
Assume 300 miles are driven -each way going to and from project. 

Total miles = 600 miles. 

1,440 miles + 600 miles = 2,040 miles 
(2,040)($0.10/mi) = $204/month 

Assume: 20 working d/month, 10 days off/month (8 days rest and 2 days 
off, holiday, weather, project supervisor discussions). 



LABOR 



Annual salary equivalent 
(overhead ) 



Sampling program 
work schedule 



Supervisor, 



Full-time geologist 
Part-time sampler.. 



1 supervisor 

1 full-time geologist.... 
1 part-time sampler 



$36,000 (35%) 






4 d/month 
(includes travel, 
supervisory, and 
interpretation. ) 


26,000 (35%) 






Full-time 
(20 d/month). 


18,000 (15%) 






Full-time 
(20 d/month). 


Annual cost plus 






$/sampling 


salary overhead 


Per month 


project month 


$48,600 


$4 


,050 


$ 810 


35,100 


2 


,925 


2,925 


20,700 


1 


,725 


1,725 



Pay total for month, 



$5,460 



274 










TRAVEL: 










A. 


Per diem: 


Per diem 


Days on 


Total 






rate 


per diem 
2.75 


per diem 
$ 137.50 




$50 




Full-time geologist. 


50 


19.0 


950.00 




Part-time sampler... 


50 


19.0 


950.00 
2,037.50 




Per diem total for 










month. 






2,038.00 



B. Vehicle Cost: 

Assume on average 300 miles to project area and 
80 miles driven to and from point of lodging. 

1. Geologist and Sampler 

Vehicle is 4 x 4 Ford Bronco, lease rate is $1,200 month, mileage free. 
Assume vehicle uses unleaded gas costing $1.10/gal at a rate averaging 12 
mi /gal. 

$1.10/12 = 9.2c(/mi + 0.8tf/mi oil and lube = 10^/mi 

a. Gas cost 

1. Miles to and from project area: 

300 mi /trip x 2 trips /work period x 2 trips /month 
= 1,200 mi /month. 

2. Miles to and from field lodging to project: 

17 one-way trips x 40 miles x 2 work periods 
= 1,360 mi /month. 

Total cost = (1,200 miles + 1,360 miles) (lOtf /mi) = 
$256 /month. 

b. Four-wheel drive rental-lease - $l,200/month, unlimited 

mileage, Ford Bronco. 

2. Supervisor 

Assume supervisor makes one trip per month to project area. Day of travel 
each way. 

Assume vehicle cost of supervisor is 25<^/mi. 

Monthly gas cost: 300 miles x 2 (one-way trips from main office) 

600 
40 miles x 2 (motel to project) = 80 

680 miles 

680 miles x 25<^/mi = $170/month. 



275 
3. Total Monthly Transportation Cost 

1. 4x4 vehicle gas cost $256 

2. 4x4 vehicle lease cost 1,200 

3. Supervisor vehicle-gas cost.... 170 

1,626 

SAMPLING SCHEDULE: 

20 d/month work schedule 

3 d/month travel (1.5 days spent on travel each 10-day work period) 
2 d/month laying out "zero" base lines 
0. 5 d/month sample handling 
5.5 days of nonsampling 

20 days less 5.5 days of nonsampling = 14.5 days of sampling per month. 

Sample rate (from Amselco, Inc., Montana) 

1. 30° to 40° slope, average open conditions, 100-ft spacing, 2 
persons with Brunton and tape working from previously from Amselco, 
surveyed base line. Equals 65 samples/d. 

Total samples/month = 65 samples/d x 14.5 days = 942.5 
samples/month . 

2. Flat and few obstructions, 100-ft sample intervals, esti- mated 100 
samples/8-h day. 

Total samples/month = 100 samples/d x 14.5 days = 1,450 samples/d. 

3. Thick underbrush, e.g., blackberries, vine maple, possible swamp. 

- add extra 2 d/month for base line. 

- estimate 25 to 50 samples/d, based on sampling interval 
(100-, 50-, 25-ft). 

- will use 38 samples/d. 

(38 samples/d )( 14. 5 days - 2 days) = 475 samples/month. 

MISCELLANEOUS FIELD EQUIPMENT COSTS: 

Sample Cost: 

Assume 70^/sample. Includes sample bag, label, area map, flagging- 
marking, and postage. Others would include field clothing and equipment. 

Sample Preparation and Drying Prior to Assay (from Amselco, going rate): 

Preparation.. $0.80 

Drying 0.25 

Total 1.05 



276 



Total Sample Cost for Miscellaneous Field Equipment and Sample Preparation: 

$0.70 

1.0 5 
1.75 

COST SUMMARY: 

Labor (monthly) 



Sa lary , 

Pe r d iem 

Transportation, 
Total 



$5,386 
2,038 
1,62 6 
9,050 

Initial sampling costs 



Cond it ion 


Cost per 
sample 1 


Field equipment and 
sample preparation 


Total cost 
per sample 




$6.24 

9.59 

19.05 


$1.75 

1.75 
1.75 


$8.00 
11.34 
20.80 



^Based on a $9,050 labor cost per month. 

The above costs assume a relatively large long-term sampling program as opposed 
to a short 1-, 2-, 3-, or so, day sampling program. Per sample cost for the 
latter case could be substantially larger. 

The initial sampling costs were provided to an exploration contractor who is 
accustomed to doing this type of work. The contractor felt the initial 
sampling costs were low by $2.00 to $3.00 across the board. The explanation 
may be that additional in-office expenses are incurred such as planning, 
programming, plotting, map drafting, analytic plotting, etc. 

As a result, the initial per sample costs are increased to $2.50 and the totals 
are rounded to the nearest higher dollar. 

Sampling costs 



Cond it ion 


Sample 
rate 


Field equipment and 
sample preparation 


Total cost 
per samplel 




$7.99 
11.34 

20.80 


$2.50 
2.50 

2.50 


$11.00 
14.00 
24.00 





^-Rounded. 



277 
4.2. UNDERGROUND MINING—CAPITAL COSTS 
4.2.1. PREPRODUCTION DEVELOPMENT 
4.2.1.1. CLEARING 

The curve for clearing during pre product ion development is based on estimated costs 
for medium-light growth on terrain with a side slope of 20% to 50%, one shift per 
day. Estimate one tree, 0.33 m in diameter, per 40 square m 2 . 

The total cost is the sum of three separate cost curves (labor, supplies, and equip- 
ment operation) having a clearing area (X), in total hectares. The curves are valid 
for operations between 1 and 1,000 ha (from 500 to 1,000 ha, the costs are expected 
to remain constant). The curves include all daily operating and maintenance costs 
associated with clearing a land surface for further development. 

BASE CURVE 

(L) Labor Operating Cost (Y L ) = 2,171.220(X)-°* 120 

The operating labor costs are distributed as follows: 

Direct labor 84% 

Maintenance labor 16% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Dozer operator 21% $16.33 

Truck driver 6% 15.89 

General laborer... 73% 13.66 

The average wage for labor is $14.28 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 269.796(X) -0 - 0303 

For clearing operations from 1 to 500 ha, the supply cost consists of 78% fuel 
oil (for burning wood and scrub) and 22% tools, cables, and chokers. For 
clearing operations of 500 to 1,000 ha, the supply cost consists of 83% fuel oil 
and 17% tools, cables, and chokers. 

(E) Equipment Operating Cost (Y E ) = 667. 618(X)"°' 0672 
The general equipment cost component distribution is 

Repair parts Fuel and lube Tires 

Crawler dozers 51% 49% 

Trucks, pickups, 
and chainsaws 14% 80% 6% 

The equipment operating cost consists of 87% for crawler dozers and 13% for 
trucks, pickups, and chainsaws. 



278 

ADJUSTMENT FACTORS 

Brush Factor For light clearing conditions where the growth consists mainly of 
brush and small trees, multiply the curves by the following factors: 

Brush factor (Yb LIGHT^ " °* 25 

For heavy clearing conditions, defined as when clearing a dense growth of trees 
(diameter of the trees commonly exceeding 0.33 m), multiply the curves by the 
following factor: 

Brush factor (Yg DENSE^ " ^-»75 

Side Slope Factor For clearing on terrain with side slopes other than 20% to 50%, 
multiply the curves by the following factors: 

For clearing on terrain with side slopes of 0% to 20%, 

Side slope factor (Yg o%-20%^ = 0.8 
For clearing on terrain with side slopes of 50% to 100%, 

Side slope factor (Ys 50%-100%) "1*2 
For clearing on terrain with side slopes greater than 100%, 

Side slope factor (Yg +100% ^ = 2.5 

Burning Factor When the burning of cleared brush and trees is prohibited because 
of environmental regulations, the brush and trees will have to be stacked or 
buried. If burning is prohibited, multiply the costs obtained from the curves 
by the following factors: 

Labor factor (F L ) -1.2 

Supply factor (Fg) = 0.2 

Equipment operation factor (Fg) =1.2 

Equipment Factor Where it is necessary to purchase equipment, or have a subcon- 
tractor perform the work, multiply the equipment operation value by the fol- 
lowing applicable factor in order to obtain the total value of equipment ex- 
pense for ownership and operation: 

Shifts per day 1 2 3 

Factor 1.75 1.56 1.50 

Subcontractor Factor If a subcontractor is used, multiply the costs obtained from 
the curves by the following factors to compensate for subcontractor's markup. 

Labor factor (F L ) = 1.50 

Supply factor (F g ) = 1.20 

Equipment operation factor (Fj?) = 1.20 



279 



Underground Mining— Capital Costs 



10,000 



a 

L. 

a 
-»■» 
o 
© 

i_ 

o 
a 

« 1,000 

_o 

"o 

■a 

I-* 
to 
o 
o 



100 





r r i r ■■ ■ ■ i r— 


ii i iii" 


Y L =2,171.220(X)~°' 1 ' 

, v — 0.0303 
Y s = 269.796(X) 

, -Q.0672 _ 
Y E =667.618(X) 

1 <X< 500 


, ,0.0 ■ 
Y L = 1.029.977(X) 

, N 0.0 
Y s = 223.489(X) 

Y E = 439.701 (X) ' 
500 <X< 1,000 




















^L 


I— 


or 
















































Equipm 


ent 


pe« 


-atf 


or 






















i 
























Suppl 


ies 







































































10 100 

AREA, total hectares 

4.2.1.1. Clearing 



1,000 



280 

4.2. UNDERGROUND MINING—CAPITAL COSTS 
4.2.1. PREPRODUCTION DEVELOPMENT 
4.2.1.2. CORE DRILLING 

Core drilling requirements vary considerably from mine to mine. For steeply dipping 
veins that require continuing development, as mining progresses down- ward, the 
amount drilled is relatively high; for near surface, flat-lying ore bodies for which 
grade and ore extent are easily determined, drilling require- ments will be minimal 
following initial exploration and development. For small to medium sized vein 
mines, 500 to 2,000 mtpd, typical drilling requirements range from 1,000 to 5,000 
m/yr; for large bulk operations, 5,000 to 50,000 mtpd, such as block caving mines, 
5,000 m/yr and greater are more typical. The evaluator should determine the approx- 
imate value appplicable in the instance under study. 

Surface rotary or diamond drills may also used for assay control and ore body defi- 
nition. This is especially true if the ore body is relatively flat lying and near 
surface. If the evaluator feels that this is characteristic of the case under 
study, the appropriate surface mining section should be consulted for pertinent 
costs. 

BASE CURVES 

The core drilling costs in this section are predicated upon utilizing a diamond 
drill capable of penetrating to 300 m, an AWG bit (hole size is 4.80 cm, 1.89 in), 
and an average penetration rate of 12.2 m per shift. All costs are per meter 
drilled and consider move and down time. Total costs for an in-house drilling 
program can be estimated as J>44.75/m. 

The total cost per day is the sum of three separate cost curves (labor, supplies, 
and equipment operation) based on a drilling rate (X), in meters per day, times the 
cost per meter. Costs are based on an operating schedule of one shift per day. 

(L) Labor Operating Cost (Y L ) = ( fc21.38/m) (X) 

The operating labor costs are distributed as follows: 

Direct labor 97% 

Maintenance labor 3% 

The operating labor costs are based on straight days pay, drilling bonuses have 
been ignored, and consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Drillers 50% $18.11 

Drillers helper 50% 13.66 

Average wage for labor is $15.89 per worker-hour (including burden and average 
shift differential). 



281 

(S) Supply Operating Cost (Y s ) = ($20.67/m) (X) 

The supply cost consists of 70% drill bits, drill rods, and core barrel assembly 
parts, 7% electric power, and 23% miscellaneous items. 

(E) Equipment Operating Cost (Y E ) = ($2.70/m)(X) 

The equipment operating cost consists of 48% for parts, 13% for lubrication, and 
39% for miscellaneous costs for drill and pump equipment. 

ADJUSTMENT FACTORS 

Cut /out Costs In many instances it is necessary to blast cut /outs for a drilling 
stations to ensure that the drilling crew does not impede traffic along the 
drifts. This is typically accomplished by a minimum of two rounds in either 
rib. This additional charge should be taken into consideration when deter- 
mining the total cost of the drilling program. For appropriate costs refer to 
the drifting section that would apply. 

Contractor Factor It has become standard within the industry for the drilling to be 
done by contractor. To adjust for this eventuality, the evaluator should 
increase the labor cost by 38%. Equipment operation and supply costs will not 
be affected directly, however; all three categories (equipment operation, 
supplies, and adjusted labor) should be increased by an additional 35% for 
indirect field, local, and national overhead, and contractor profit charges. 
Multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) = 1.86 

Supply factor (F s ) = 1.35 

Equipment operation factor (Fg) = 1.35 



282 

4.2. UNDERGROUND MINING—CAPITAL COSTS 
4.2.1. PREPRODUCTION DEVELOPMENT 
4.2.1.3. SINKING SHAFTS 

The total cost per meter is the sum of three separate cost curves (labor, supplies, 
and equipment operation) based on a face area (X), in square meters. The curves 
are valid for areas between 4 and 40 m^, with average advances of 1.9 m/d in the 
smaller shafts and 1.3 m/d overall in the larger shafts, operating three shifts per 
day. The curves are based on circular shafts with concrete lining. The total cost 
per meter is multiplied by the total meters of excavation needed during development 
to obtain the capital cost. 

Services installed in the shaft include guides, manways, and air, water, vent, and 
signal lines. Sinking is considered to be done with a sinking headframe. Costs 
for permanent hoisting facilities are included in section 4.2.3.1. (Hoisting 
Facilities). 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 615.595(X) ' 542 

The operating labor costs are distributed as follows: 

Direct labor 84% 

Maintenance Labor 16% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Miners 34% $18.44 

Helpers 22% 15.09 

Support 44% 17.04 

Average wage for labor is $16.35 per worker-hour (including burden and average 
shift differential) 

(S) Supply Operating Cost (Y s ) = 182. 051 (X) * 558 

The supply cost consists of 21% explosives, 34% steel items, 38% miscellaneous 
items, 6% electricity, and 1% timber. Supplies include drill bits and steel, 
powder, caps, timber, hanging rods, vent line, compressed air pipe, pump line, 
water line, concrete line, blasting lines, and bell cord. 

(E) Equipment Operating Cost (Y E ) = 681 .476 (X) * 407 

The equipment operating cost consist of 88% for repair parts, 7% for fuel and 
lubrication, and 5% for tires (tires used on topside crane and loader servicing 
the shaft sinking). The equipment operating curve covers daily maintenance and 
repair, repair parts, and lubrication for drills, fans, muckers, and other 
equipment used to sink the shaft. 



283 

ADJUSTMENT FACTORS 

Rock Hardness Factor Shaft sinking productivity is directly related to rock hard- 
ness. If the compressive strength of the rock is known, or an estimate can be 
made from table A-l, multiply the costs obtained from the curves by the follow- 
ing factors (base rock strength = 31,700 psi): 

Labor factor (F L ) - 0.388(C) ' 093 

Supply factor (F s ) = 0.579(C) * 054 

Equipment operation factor (F E ) = 0.715(C) * 033 

where C = compressive rock strength, in pounds per square inch. 

Timber Factor If the shaft is to be lagged with timber instead of lined with con- 
crete, multiply the costs obtained from the curves by the following factor: 

Timber factor (F T ) - 0.482(X) * 077 
where X = face area in square meters. 

Assume a timber-lined shaft would have a rectangular configuration. 



:84 



Underground Mining— Capital Costs 



10,000 



Q. 
© 

i_ 
10 

£ 

0) 
Q. 

(n 

i_ 
a 

"5 
•a 



in 
O 
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1,000 



100 







































































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n^°° 














£<^ 


^ 


£ ° p6 ' 


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^ 


^ 


















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54? 
Y L = 615.595(X) 

Y S = 1 82.051 (X) ' 558 
n 4H7 






















Y E = 

4 

1 


681.476( 
<X< 4C 


:xr 

> 


. ., , 





10 
SHAFT AREA, square meters 

4.2.1.3. Sinking shafts 



100 



285 



4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.1. PREPRODUCTION DEVELOPMENT 

4.2.1.4.1. DRIFT DEVELOPMENT 

SMALL DRIFTS FOR RAIL HAULAGE 



Costs derived from these curves apply to drifts with average rock hardness, abra- 
siveness and standing characteristics are assumed. Advance rates range from 2 to 3 
m/d, with productivity averaging 0.39 m per worker-shift. It has been assumed that 
10% of the drift will require support consisting of 6-ft expansion shell rock bolts 
on a regular pattern. Drilling is accomplished with 3-in jacklegs. 

The drifting cycle includes drilling, loading, blasting, venting, mucking, scaling, 
track laying, lunch, and travel. Muck is loaded into 2- or 3-yd^ development cars 
using an overshot mucker. Blasted material is hauled an average of 200 m to either 
a fill point or reconveyance point (ore pass, hoisting station, etc.). The expense 
of additional handling must be added through the hoisting and/or haulage curves. 

Total cost per meter is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a face area (X), in square meters. The curves are 
valid for areas between 3 and 12 m 2 , operating two shifts per day. The cost per 
meter is multiplied by the total meters of drift needed for development to obtain 
the capital cost. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 79.926(X) ' 764 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



95% 

5% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(3 to (6 to per hour 

6 m 2 ) 12 m 2 ) (base rate) 

Miners 90% 83% $18.31 

Helpers - 11% 13.86 

Motor operators 10% 6% 16. 09 

Average wage for labor is $17.56 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Cost (Y s ) = 73.283(X)°- 602 

The supply cost consists of 44% steel items, 23% explosives, 10% drill bits and 
steel, 10% ventilation materials, 5% material waste, 4% timber, 3% ballast, and 
1% electricity. Supplies include drill bits and steel, powder, caps, 
primacord, rock bolts, water pipe, compressed air pipe, electricity, steel 
rail, ties, ballast, ventilation tubing, and material waste. 



286 

(E) Equipment Operating Cost (Y E ) = 4.869 (X)°* 647 

The equipment operating cost consists of 73% for maintenance and overhaul parts, 
11% for fuel, 8% for ground engaging components, and 8% for lubrication. The 
equipment curve covers daily maintenance and overhaul parts, fuel, lubrication, 
and ground engaging components. Equipment used in drifting includes jacklegs, 
overshot muckers, ore cars, jackhammers, locomotives, and auxiliary fans. 

ADJUSTMENT FACTORS 

Rock Hardness Factor Drifting productivity is directly related to rock hardness. 
If the compressive strength of the rock is known, or an estimate can be made 
from table A-l in the appendix, multiply the costs obtained from the curves by 
the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) - 093 

Supply factor (F s ) - 0.579(C) * 054 

Equipment operation factor (F E ) = 0.715(C) 0,033 

where C ■ compressive rock strength in pounds per square inch. 

Rock Bolt Factor For regular bolting of the entire drift, (1.2 bolts per square 
meter), multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) = 1.08 

Supply factor (F s ) = 1.10 

Equipment operation factor (Fg) = 1.16 

Timbering Factor If the drifts require timbering, multiply the costs obtained from 
the curves by the following factors: 

Labor factor (F L ) = 1.30 

Supply factor (F s ) = 1.39 

These factors will account for standard cap-and-post timbering plus lagging for 
the entire length of the drift. 



287 



Underground Mining— Capital Costs 



1,000 



c 



£ 100 



© 

CD 

E 

L. 

© 
a. 

CO 

L. 

_o 

o 
■o 



en 

O 

o 



10 















































v^5 


oj^ 




































































































dj* 


o^ 


2^ 












v0^ 


■oji 


























0.764 - 
Y L = 79.926(X) 

0.602 
Y s - 73.283(X) 

Y E = 4.869(X)°- 647 
3<X< 12 




















































l III 



10 
FACE AREA, square meters 



100 



4.2.1.4.1. Drift development 
SMALL DRIFTS FOR RAIL HAULAGE 



288 

4.2. UNDERGROUND MINING—CAPITAL COSTS 

4.2.1. PREPRODUCTION DEVELOPMENT 

4.2.1.4.2. DRIFT DEVELOPMENT 

SMALL DRIFTS FOR RUBBER-TIRED HAULAGE 



Costs derived from these curves apply to drifts with average rock hardness, abra- 
siveness and standing characteristics are assumed. Advance rates range from 2.4 to 
3.6 m/d, with productivity averaging 0.49 m per worker-shift. It has been assumed 
that 10% of the drift will require support consisting of 6-ft expansion shell rock 
bolts on a regular pattern. Drilling is accomplished with 3 in jacklegs. 

The drifting cycle includes drilling, loading, blasting, venting, mucking, scaling, 
lunch, and travel. Mucking is accomplished using an LHD unit. Blasted material is 
hauled an average of 200 m to either a fill point or reconveyance point (ore pass, 
hoisting station, etc.). The expense of additional handling must be added through 
the hoisting and /or haulage curves. 

Total cost per meter is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a face area (X), in square meters. The curves are 
valid for areas between 4 and 12 m 2 , operating two shifts per day. The cost per 
meter is multiplied by the total meters of drift needed for development to obtain 
the capital cost. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 72. 721 (X) * 685 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



96% 
4% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(4 to (8 to per hour 

8m 2 ) 12 m 2 ) (base rate) 

Miners 84% 83% $18.31 

Helpers 16% 11% 13.86 

LHD Operators - 6% 16.53 

Average wage for labor is $17.30 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Cost (Y s ) = 43.313(X) - 687 

The supply cost consists of 33% steel items, 33% explosives, 15% ventilation 
materials, 13% drill bits and steel, 5% material waste, and 1% electricity. 
Supplies include drill bits and steel, powder, caps, primacord, rock bolts, 
water pipe, compressed air pipe, electricity, ventilation tubing, and material 
waste. 



289 

(E) Equipment Operating Cost (Y E ) = 1.360(X) 1,188 

The equipment operating cost consists of 64% for maintenance and overhaul parts, 
18% for tires, 13% for fuel, and 5% for lubrication. The equipment curve covers 
daily maintenance and overhaul parts, fuel, lubrication, and tires. Equipment 
used in drifting includes jacklegs, LHD's, auxiliary fans, and scissor lifts. 

ADJUSTMENT FACTORS 

Rock Hardness Factor Drifting productivity is directly related to rock hardness. 
If the compressive strength of the rock is known, or an estimate can be made 
from table A-l in the appendix, multiply the costs obtained from the curves by 
the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) * 093 

Supply factor (F s ) = 0.579(C) * 054 

Equipment operation factor (F E ) = 0.715(C) * 033 

where C = compressive rock strength, in pounds per square inch. 

Rock Bolt Factor For regular bolting of the entire drift, (1.2 bolts per square 
meter), multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) = 1.10 

Supply factor (F s ) = 1.15 

Equipment operation factor (Fg) = 1.11 



!90 



Underground Mining— Capital Costs 



1,000 



a* 

c 
a> 



£ 100 



E 

u 

a. 

CO 

V_ 

O 

o 

T3 



01 
O 

o 



10 



































































\ 


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5 


&P 


















































































4 


$> 














.^ 


o<3 

r 


/ 














^ 








0.685 ■ 
Y L = 72.721 (X) 

Y s = 43.31 3(X)°' 687 ■ 

Y E = 1.360(X) 1 - 188 

4 <X< 12 




^ J 


^ 














































i iii 



10 
FACE AREA, square meters 



100 



4.2.1.4.2. Drift development 
SMALL DRIFTS FOR RUBBER-TIRED HAULAGE 



291 



4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.1. PREPRODUCTION DEVELOPMENT 

4.2.1.4.3. DRIFT DEVELOPMENT 

MEDIUM DRIFTS FOR RUBBER-TIRED HAULAGE 



Costs derived from these curves apply to drifts with average rock hardness, abra- 
siveness and standing characteristics are assumed. Advance rates range from 5.4 to 
6.0 m/d, with productivity averaging 0.71 m per worker-shift. It has been assumed 
that 10% of the drift will require support consisting of 6-ft expansion shell rock 
bolts on a regular pattern. Drilling is accomplished with two- or three-boom 
jumbos. 

The drifting cycle includes drilling, loading, blasting, venting, mucking, scaling, 
lunch, and travel. Mucking is accomplished using an LHD unit. Blasted material is 
hauled an average of 200 m to either a fill point or reconveyance point (ore pass, 
hoisting station, etc.). The expense of additional handling must be added through 
the hoisting and /or haulage curves. 

Total cost per meter is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a face area (X), in square meters. The curves are 
valid for areas between 6 and 20 m 2 , operating two shifts per day. The cost per 
meter is multiplied by the total meters of drift needed for development to obtain 
the capital cost. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 86.960(X) ' 349 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



93% 
7% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(6 to (13 to per hour 

13 m 2 ) 20 m 2 ) (base rate) 

Miners 69% 67% $18.31 

Helpers 21% 20% 13.86 

LHD operators 10% 7% 16.53 

Utility workers - 6% 16.98 

The average wage for labor is $17.21 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 27.390(X) * 855 

The supply cost consists of 53% steel items, 29% explosives, 12% ventilation 
materials, 5% material waste, and 1% electricity. Supplies include drill bits 
and steel, powder, caps, primacord, rock bolts, water pipe, compressed air pipe, 
electricity, ventilation tubing, and material waste. 



292 

(E) Equipment Operating Cost (Y E ) = 4 .497 (X)°* 684 

The equipment operating cost consists of 57% for maintenance and overhaul parts, 
24% for tires, 14% for fuel, and 5% for lubrication. The equipment curve covers 
daily maintenance and overhaul parts, fuel, lubrication, and tires. Equipment 
used in drifting includes jumbo mounted drifters, LHD's, jacklegs, auxiliary 
fans, and scissor lifts. 

ADJUSTMENT FACTORS 

Rock Hardness Factor Drifting productivity is directly related to rock hardness. 
If the compressive strength of the rock is known, or an estimate can be made 
from table A-l in the appendix, multiply the costs obtained from the curves by 
the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) - 093 

Supply factor (F s ) = 0.579(C) ' 054 

Equipment operation factor (F E ) = 0.715(C) 0,033 

where C = compressive rock strength in pounds per square inch. 

Rock Bolt Factor For regular bolting of the entire drift, (1.2 bolts per square 
meter), multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) = 1.08 

Supply factor (F s ) = 1.14 

Equipment operation factor (Fj?) = 1* 4 2 

Shotcrete Factor If the drift is to be shotcreted, multiply the costs obtained from 
the curves by the following factors: 

Labor factor (F L ) =1.03 

Supply factor (Fs) = 1.24 

Equipment operation factor (Fg) = 1.15 

Concrete Factor If the drift is to be lined with concrete, multiply the costs 
obtained from the curves by the following factors: 

Labor factor (F L ) = 1.64 

Supply factor (F s ) = 1.72 

Equipment operation factor (Fg) = 2.26 



293 

Steel Set Factor If steel sets are to be used, multiply the costs obtained from the 
curves by the following factors: 

Labor factor (F L ) = 1.37 

Supply factor (F s ) = 2.47 

Equipment operation factor (F E ) = 1.19 



294 



Underground Mining— Capital Costs 



1.000 



c 
© 



© 
© 
£ 

v_ 
© 
Q. 

0) 

i_ 

"5 
•o 



CO 

o 
o 



100 



10 



I I I 














, 0.349 
Y L = 86.960(X) 

Y s = 27.390(X)°' 855 

"Y E = 4.497(X)°- 684 
6 <X< 20 
























































^V-O" 




























































< 


■v 














wfl 


^ 
















tf 


^ 















10 
FACE AREA, square meters 



100 



4.2.1.4.3. Drift development 
MEDIUM DRIFTS FOR RUBBER-TIRED HAULAGE 



295 



4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.1. PREPRODUCTION DEVELOPMENT 

4.2.1.4.4. DRIFT DEVELOPMENT 

LARGE DRIFTS FOR RAIL HAULAGE 



Costs derived from these curves apply to drifts with average rock hardness, abra- 
siveness and standing characteristics are assumed. Advance rates range from 5.0 to 
6.8 m/d, with productivity averaging 0.57 m per worker-shift. It has been assumed 
that 10% of the drift will require support consisting of 6-ft expansion shell rock 
bolts on a regular pattern. Drilling is accomplished with 3 in jacklegs. 

The drifting cycle includes drilling, loading, blasting, venting, mucking, scaling, 
track laying, lunch, and travel. Muck is loaded into 6-to 10-yd 3 development 
cars using an overshot mucker. Blasted material is hauled an average of 200 m to 
either a fill point or reconveyance point (ore pass, hoisting station, etc.). The 
expense of additional handling must be added through the hoisting and /or haulage 
curves. 

Total cost per meter is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a face area (X), in square meters. The curves are 
valid for areas between 8 and 25 m 2 , operating two shifts per day. The cost per 
meter is multiplied by the total meters of drift needed for development to obtain 
the capital cost. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 27. 037 (X) * 857 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



90% 
10% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(8 to (16 to per hour 

16 m 2 ) 25 m 2 ) (base rate) 

Miners 73% 68% $18.31 

Helpers 12% 17% 13.86 

Utility workers 8% - 16.98 

Track workers - 9% 16.53 

Motor operators 7% 6% 16.09 

The average wage for labor is $17.34 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 63.689(X) * 693 

The supply cost consists of 53% steel items, 19% explosives, 10% drill bits and 
steel, 8% ventilation materials, 5% material waste, 3% timber, 1% ballast, and 
1% electricity. Supplies include drill bits and steel, powder, caps, primacord, 



296 

rock bolts, water pipe, compressed air pipe, electricity, steel rail, ties, 
ballast, ventilation tubing, and material waste. 

(E) Equipment Operating Cost (Y E ) = 1.437 (X) 1 * 056 

The equipment operating cost consists of 83% for maintenance and overhaul parts, 
9% for ground engaging components, 4% for fuel, and 4% for lubrication. The 
equipment curve covers daily maintenance and overhaul parts, fuel, lubrication, 
and ground engaging components. Equipment used in drifting includes jumbos, 
overshot muckers, ore cars, jacklegs, jackhammers, locomotives, scissor lifts, 
rail tampers, roof bolters, and auxiliary fans. 

ADJUSTMENT FACTORS 

Rock Hardness Factor Drifting productivity is directly related to rock hardness. 
If the compressive strength of the rock is known, or an estimate can be made 
from table A-l in the appendix, multiply the costs obtained from the curves by 
the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) ' 093 

Supply factor (F s ) = 0.579(C) * 054 

Equipment operation factor (F E ) = 0.715(C) 0,033 

where C = compressive rock strength, in pounds per square inch. 

Rock Bolt Factor For regular bolting of the entire drift, (1.2 bolts per square 
meter), multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) = 1.02 

Supply factor (Fs) = 1.09 

Equipment operation factor (Fj?) =1.23 

Dual Track Factor To account for two sets of tracks in the drift, multiply the 

costs obtained from the curves by the following factors: (drifts greater than 
16 m 2 ): 

Labor factor (F L ) =1.11 

Supply factor (Fg) = 1.26 

Equipment operation factor (F E ) = 1*17 

Shotcrete Factor If the drift is to be shotcreted, multiply the costs obtained 
from the curves by the following factors: 

Labor factor (F L ) = 1.02 

Supply factor (Fg) = 1.16 

Equipment operation factor (F E ) = 1.15 



297 



Concrete Factor If the drift is to be lined with concrete, multiply the costs ob- 
tained from the curves by the following factors: 

Labor factor (F L ) = 1.52 

Supply factor (F s ) = 1.81 

Equipment operation factor (Fe^ = 2.14 

Steel Set Factor If steel sets are to be used, multiply the costs obtained from 
the curves by the following factors: 

Labor factor (F L ) = 1.29 

Supply factor (Fs> = 1.95 

Equipment operation factor (Fg) = 1.10 



298 



Underground Mining— Capital Costs 



1.000 



c 
o 





■+■> 
© 

E 100 

i_ 
o 

a 

W 

L. 

"5 

T3 



o 
o 



10 



1 1 1 
















" Y L = 27.037(X)°' 857 
Y s = 63.689(X)°' 693 
Y E = 1.437(X) 
8 <X< 25 




















« 




y 








^ 


















































































pf 
















\<5 


oy 


yY 














<<, 













10 
FACE AREA, square meters 



100 



4.2.1.4.4. Drift Development 
LARGE DRIFTS FOR RAIL HAULAGE 



299 



4.2. UNDERGROUND MINING—CAPITAL COSTS 

4.2.1. PREPRODUCTION DEVELOPMENT 

4.2.1.4.5. DRIFT DEVELOPMENT 

LARGE DRIFTS FOR RUBBER-TIRED HAULAGE 



Costs derived from these curves apply to drifts with average rock, hardness, abra- 
siveness and standing characteristics are assumed. Advance rates range from 4.6 to 
5.4 m/d, with productivity averaging 0.55 m per worker-shift. It has been assumed 
that 10% of the drift will require support consisting of 6-ft expansion shell rock 
bolts on a regular pattern. Drilling is accomplished with two- or three-boom 
jumbos. 

The drifting cycle includes drilling, loading, blasting, venting, mucking, scaling, 
lunch, and travel. Mucking is accomplished using front-end loaders and trucks. 
Blasted material is hauled an average of 200 m to either a fill point or reconvey- 
ance point (ore pass, hoisting station, etc.). The expense of additional handling 
must be added through the hoisting and /or haulage curves. 

Total cost per meter is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a face area (X), in square meters. The curves are 
valid for areas between 20 and 50 m 2 , operating two shifts per day. The cost per 
meter is multiplied by the total meters of drift needed for development to obtain 
the capital cost. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 43.360(X) ' 542 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



91% 
9% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(20 to (35 to per hour 

50 m 2 ) 50 m 2 ) (base rate) 

Miners 68% 59% $18.31 

Helpers 11% 20% 13.86 

Loader operators 7% 6% 16.53 

Utility workers 14% 15% 16.98 

The average wage for labor is $17.28 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 57. 018(X) ' 617 

The supply cost consists of 34% explosives, 33% steel items, 15% drill bits and 
steel, 12% ventilation materials, 5% material waste, and 1% electricity. Sup- 
plies include drill bits and steel, powder, caps, primacord, rock bolts, water 
pipe, compressed air pipe, electricity, ventilation tubing, and material waste. 



300 

(E) Equipment Operating Cost (Y E ) = 4.144 (X)°* 661 

The equipment operating cost consists of 60% for maintenance and overhaul parts, 
2 5% for fuel, 11% for tires, and 4% for lubrication. The equipment curve covers 
daily maintenance and overhaul parts, fuel, lubrication, and tires. Equipment 
used in drifting includes jumbo mounted drifters, front end loaders, jacklegs, 
auxiliary fans, and scissor lifts. 

ADJUSTMENT FACTORS 

Rock Hardness Factor Drifting productivity is directly related to rock hardness. 
If the compressive strength of the rock is known, or an estimate can be made 
from table A-l in the appendix, multiply the costs obtained from the curves by 
the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) ' 093 

Supply factor (F s ) = 0.579(C) * 054 

Equipment operation factor (F E ) = 0.715(C) 0,033 

where C = compressive rock strength, in pounds per square inch. 

Rock Bolt Factor For regular bolting of the entire drift, (1.2 bolts per square 
meter), multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) = 1.12 

Supply factor (F s ) = 1.13 

Equipment operation factor (F E ) = 1*31 

Shotcrete Factor If the drift is to be shotcreted, multiply the costs obtained from 
the curves by the following factors: 

Labor factor (F L ) = 1.03 

Supply factor (F s ) = 1.19 

Equipment operation factor (F E ) = 1.15 



301 



1,000 



c 






E 

O 

Q. 

10 
JO 

~o 

T3 



100 



10 

o 

o 



10 



10 



Underground Mining— Capital Costs 

























S^" 










j^°I — — ' 










































Aau^- 






542 - 
Y L = 43.360(X) U 

/ xO-617 
Y S =57.018(X) 

, 0.661 " 
Y E = 4.144(X) 

20<X< 50 




1 E-'-V^^-** - -- 






i i 



100 



FACE AREA, square meters 



4.2.1.4.5. Drift development 
LARGE DRIFTS FOR RUBBER-TIRED HAULAGE 



302 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.1. PREPRODUCTION DEVELOPMENT 

4.2.1.4.6. DRIFT DEVELOPMENT 

DRIFT-TUNNEL BORING 

This section covers costs associated with a mine using drift-tunnel boring machines 
(TBM's) and associated equipment. 

The total cost per meter is the sum of three separate cost curves (labor, supplies, 
and equipment operation) based on the excavated machine diameter (X), in meters. 
The curves are valid for diameters between 2.74 and 10.67 m, operating two shifts 
per day. The cost per meter is multiplied by the total meters of drift or tunnel 
needed for development to obtain the capital cost. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) - 142.640(X) * 000 

The operating labor costs are distributed as follows: 

Direct labor 62% 

Maintenance labor 38% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Operator 14% $18.31 

Helpers 22% 13.86 

Support 64% 16.27 

The average wage for labor is $15.92 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 2.845(X) 1,896 

The supply cost consists of 81% drill and cutter bits, 5% lubrication, 13% elec- 
tricity, and 1% miscellaneous items. Supplies include oil, filters, wear items, 
and power. 

(E) Equipment Operating Cost (Y E ) = 1.135(X) 3 * 016 

The equipment operating cost consists of 69% for maintenance and overhaul parts 
and 31% for cutter costs. The equipment operating curve covers daily mainte- 
nance and repair, repair parts, and cutter costs. 

ADJUSTMENT FACTOR 

Contractor Factor A contractor is often used with drift-tunnel boring because of 
the specialized nature of the machinery. If a contractor is used, multiply the 
costs obtained from the curves by the following factor: 

Labor factor (F L ) = 1.94 



303 



Underground Mining— Capital Costs 



10,000 



c 



£ 1,000 



09 
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L. 

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A 




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<! 


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0.000 ■ 
Y L = 142.640(X) 

/ J- 896 
Y s - 2.845(X) 

Y F = 1.13500 




& 


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y 


/ 










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r 






















2.74 <> 


(< 11 


D.67 





10 



100 



MACHINE DIAMETER, meters 



4.2.1.4.6. Drift development 
DRIFT/TUNNEL BORING 



304 

4.2. UNDERGROUND MINING—CAPITAL COSTS 

4.2.1. PREPRODUCTION DEVELOPMENT 

4.2.1.5.1. RAISE DEVELOPMENT 
DRIVING RAISES 



The costs calculated from these curves represent two-compartment, conventionally 
driven raises. It is assumed that the raises are timbered and lagged, and contain 
water and compressed air lines. Advance rates range from 0.83 m per worker-shift 
for a 2.3 m^ raise to 0.49 m per worker-shift for a 9.3 m 2 raise. It is assumed 
that blasted material is hauled an average distance of 200 m to a conveyance point 
(ore pass, hoisting station, etc.) using rail mounted equipment. If the material is 
to be hauled out of the mine, the tonnage attributed to raising should be added to 
the haulage curves for the period of time necessary to complete the raise. 

Total cost per meter is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a face area (X), in square meters. The curves are 
valid for areas between 2 and 9.5 m 2 , operating two shifts per day. The cost per 
meter is multiplied by the total meters of raise needed for preproduction develop- 
ment to obtain the capital cost. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 134. 819 (X) * 438 

The operating labor costs are distributed as follows: 

Direct labor 96% 

Maintenance labor 4% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(2 to (6 to per hour 

6 m 2 ) 9.5 m 2 ) (base rate) 

Miners 85% 76% $18.31 

Helpers 12% 19% 13.86 

Motor operators 3% 5% 16.09 

The average wage for labor is $17.53 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 109.009(X) ' 526 

The supply cost consists of 51% timber, 19% explosives, 10% steel pipe, 10% 
ventilation materials, 4% material waste, 5% drill bits and steel, and 1% 
electricity. Supplies include drill bits and steel, powder, caps, lead wire, 
water pipe, compressed air pipe, vent duct, electricity, and timber. 

(E) Equipment Operating Cost (Y E ) = 2 .267 (X)°« 757 

The equipment operating cost consists of 57% for maintenance and overhaul parts, 
33% for ground engaging components, and 10% for lubrication. The equipment 
curve covers maintenance and overhaul parts, ground engaging components, and 



305 

lubrication. Equipment used for raising includes stoper drills, fans, locomo- 
tives, ore cars, and overshot muckers. 

ADJUSTMENT FACTORS 

Timber Factor If the raise is not timbered and lagged, multiply the costs obtained 
from the curves by the following factors: 

Labor factor (F L ) = 0.76 

Supply factor (F s ) = 0.50 

These factors will account for the fact that the only timber needed will be for 
ladders, landings, and drill platforms (stull supported), and that the labor 
will be reduced since no timber installation time will be required. 

Raise Climber Factor If a raise climber is used, construction time is signifi- 
cantly reduced, but an extra piece of equipment is required. To modify the 
costs, multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) = 0.56 

Equipment operation factor (Fg) = 1.44 

Rubber-Tired Equipment Factor If an LHD is used for muck, disposal, it is assumed 

that the overshot mucker, battery locomotive, and rail cars would be eliminated. 
To compensate for this, multiply the costs obtained from the curves by the 
following factors: 

Labor factor (F L ) = 0.99 

Equipment operation factor (Fg^ = 1*25 

Steel Chute Factor The placement of a steel chute, with an air piston activated, 
reverse guillotine steel door, at the bottom of a raise requires additional 
labor and supplies. However, the need for an overshot mucker is eliminated. To 
account for the additional expense, for each raise, add to the costs obtained 
from the curves the following amounts: 

Labor factor (F L ) = $1,172.00 

Supply factor (F s ) = $6,940.00 

To account for the absence of the overshot mucker multiply the equipment costs 
obtained from the curves by the following factor: 

Equipment operation factor (FrO = 0.80 



306 



Underground Mining— Capital Costs 



1,000 



c 

© 

.2 100 



© 
E 

© 

Cl. 

w 



? 10 

■a 



i- 
to 
o 
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; up puo- 


















. N 0.438 
Y L = 134.81 9(X) 

Y s = 109.009(X) 

, v0.757 
- Y E = 2.267(X) 

2<X< 9.5 
































*\00 __ 






-* oP«£ 


l*-'_^^-- — = 






E<*l3g5 


lo^_— - — ' 








^^~^ 





























FACE AREA, square meters 



10 



4.2.1.5.1. Raise development 
DRIVING RAISES 



307 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.1. PREPRODUCTION DEVELOPMENT 

4.2.1.5.2. RAISE DEVELOPMENT 
DROP RAISES 

With the advent of down-the-hole drills, longhole or drop raising is becoming a 
popular method of driving large ventilation raises and ore passes. The costs esti- 
mated using these curves apply to any unlined raise driven using down-the-hole 
drills and vertical crater retreat blasting methods. Advance rates range from 1.5 m 
per worker-shift for a 4.6 m^ raise to 1.0 m per worker-shift for a 13.4 m^ 
raise. It is assumed that blasted material is hauled an average distance of 200 m 
to a conveyance point (ore pass, hoisting station, etc.) using rubber-tired LHD's. 
If the material is to be hauled out of the mine, the tonnage attributed to raising 
should be added to the haulage curves for the period of time necessary to muck the 
raise. 

Total cost per meter is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a face area (X), in square meters. The curves are 
valid for areas between 4.5 and 13.5 m 2 , operating two shifts per day. The cost 
per meter is multiplied by the total meters of raise required for development to 
obtain the capital cost. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) - 58.314(X)°» 374 

The operating labor costs are distributed as follows: 

Direct labor 86% 

Maintenance labor 14% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Drillers 29% $18.31 

Helpers 15% 13.86 

Blasters 43% 18.31 

LHD operators 13% 16. 53 

The average wage for labor is $17.41 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 136.383(X) ' 205 

The supply cost consists of 68% blasting materials, 24% drill bits and steel, 7% 
miscellaneous items, and 1% timber. Supplies include drill bits and steel, 
blasting agent, caps, primers, detonation cord, timber, and caristrap. 



308 

(E) Equipment Operating Cost (Y E ) = 8.895(X) ' 711 

The equipment operating cost consists of 43% for maintenance and overhaul parts, 
41% for fuel, 9% for tires, and 7% for lubrication. The equipment curve covers 
daily maintenance and overhaul parts, fuel, lubrication, and tires. Equipment 
used in drop raising includes down-the-hole drills mounted on air tracks, 
portable air compressors, LHD units, and portable bit grinders. 

ADJUSTMENT FACTORS 

Rock Hardness Factor Down-hole-drill productivity is directly related to rock hard- 
ness. If the compressive strength of the rock is known, or an estimate can be 
made from table A-l in the appendix, multiply the costs obtained from curves by 
the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) ' 093 

Supplies factor (F s ) = 0.579(C) ' 054 

Equipment operation factor (F E ) = 0.716(C) ' 033 

where C = compressive rock strength, in pounds per square inch. 

Service Installation Factor Few drop raises are used as service raises. If, how- 
ever, services are installed in the raise, multiply the labor and supply costs 
by the following factors: 

Labor factor (F L ) = 1.51 

Supplies factor (Fg) = 1.37 

This will account for the purchase and installation of rockbolts, ladders, 
landings, and pipe. 



309 



Underground Mining— Capital Costs 



1,000 



C 
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Y L = 58.31 4(X)°' 374 
Y s = 136.383(X)°- 205 




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= 8.89 
4.5 <X 


5(X)' 

< 13. 


j./r 

5 





10 
FACE AREA, square meters 



100 



4.2.1.5.2. Raise development 
DROP RAISES 



310 

4.2. UNDERGROUND MINING—CAPITAL COSTS 

4.2.1. PREPRODUCTION DEVELOPMENT 

4.2.1.5.3. RAISE DEVELOPMENT 
RAISE BORING 

The costs calculated using these curves apply to any unlined bored raise that has 
been drilled down and reamed up. The curves take into account costs incurred in 
preparation of upper and lower stations, drill platform construction, boring machine 
installation, pilot hole drilling, reaming operations, and muck removal. Average 
advance rates, including station preparation, vary from 1.89 m per worker-shift for 
a 1. 5-m-diameter raise to 1.06 m per worker-shift for a 3-m-diameter raise. It is 
assumed that reamer cuttings are hauled an average distance of 200 m to a conveyance 
point (ore pass, hoisting station, etc.) using rubber-tired LHD's. If the material 
is to be hauled out of the mine, the tonnage attributed to raise boring must be 
added to the haulage curves for the period of time necessary to complete the raise. 

Total cost per meter is the sum of three separate cost curves (mining and repair 
labor, supplies, and equipment operation) calculated using a raise diameter (X), in 
meters. The curves are valid for diameters between 1.5 and 3 m, operating two 
shifts per day. This cost is multiplied by the total meters of raise needed during 
development to obtain the capital cost. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) - 81. 941 (X) 1 ' 376 

The operating labor costs are distributed as follows: 

Direct labor 49% 

Maintenance labor 51% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 
per hour 
(base rate) 

Miners 31% $18.31 

Raise bore operators 26% 18.31 

Raise bore helpers 26% 13.86 

LHD operators 8% 16.09 

Helpers 8% 13.86 

Nippers 1% 16.09 

The average wage for labor is $16.60 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 180. 595(X) 1 * 097 

The supply cost consists of 83% drill and cutter bits, 5% material waste, 4% 
drill steel, 3% electricity, 3% blasting materials, 1% rock support, and 1% 
miscellaneous items. Supplies include drill bits and steel for the air legs, 
drill bits, cutter bits, and drill steel for the boring machine, blasting agent, 
caps, detonation cord, rock bolts, wire mesh, concrete, and electricity. 



311 

(E) Equipment Operating Cost (Y £ ) = 46. 568CX) 1 • 759 

The equipment operating cost consists of 69% for maintenance and overhaul 
parts, 22% for ground engaging components, 7% for lubrication, and 2% for fuel 
and tires. The equipment curve covers overhaul and maintenance parts, ground 
engaging components, fuel, lubrication, and tires. The equipment used for 
raise boring and station preparation includes air leg drills, LHD units, and 
raise bore machines. 

ADJUSTMENT FACTORS 

Raise Length Factor Because of the high costs incurred in station preparation and 
machine setup, the actual cost per meter will decrease as the length of the 
raise increases. The raise curves were derived using an assumed raise length 
of 100 m. If the length of the raise differs from this, multiply the costs 
obtained from the curves by the following factor: 

Length factor (F L ) = 1 .468(L) _0 - 080 
where L = raise length, in meters. 

The following graph illustrates recommended lengths for various raise diameters: 



1,000 



675 



Raise length, 
in meters 




350 



1.5 



2.0 2.5 

Raise diameter, in meters 



Lining Factor If the raise is to be used as an ore chute or vent raise, it may be 
lined with steel. To account for this, multiply the labor and supply costs by 
the following factors: 

Labor factor (F L )= 1.12 

Supply factor (F s ) = 1.27(X) - 276 
where X = raise diameter, in meters. 



Service Installation Factor If services are installed in the raise, multiply the 
labor and supply costs by the following factors: 

Labor factor (F L )= 1.21 

Supply factor (F g ) = 1.16 



312 

This will account for the purchase and installation of rockbolts, ladders, 
landings, and pipe. 

Rock Hardness Factor The hardness of the rock being bored has a great effect on 

both penetration rate and cutter life. The curves were derived using rock with 
an assumed compressive strength of 50,000 psi. Total cost may range from 25% of 
the cost for rock with a compressive strength of 14,500 psi to 200% of the cost 
for rock with a compressive strength of 75,000 psi. Actual variances are very 
difficult to estimate; however, as a general rule of thumb, for differences in 
rock hardness, multiply the costs obtained from the curves by the following 
factor: 

Hardness factor (F H ) - 0.0000018(C) 1 ' 231 

where C = compressive strength of rock in, pounds per square inch. See 

table A-l in the appendix for average compressive rock strengths. 



313 



1,000 



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100 



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Underground Mining— Capital Costs 

























<$^ 










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/$ 










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, J. 376 ■ 
Y L = 81. 941 (X) 

, J. 097 
Y s = 180.595(X) 

/ J. 759 ■ 
Y E = 46.568(X) 

1.5 <X< 3 










T - 



10 



RAISE DIAMETER, meters 



4.2.1.5.3. Raise development 
RAISE BORING 



314 

4.2. UNDERGROUND MINING— CAPITAL COSTS 
4.2.1. PREPRODUCTION DEVELOPMENT 
4.2.1.6. INCLINES-DECLINES 

The curve covers a range of inclines -declines with average advances of 2.2 m/d in 
the smaller openings and 0.6 m/d overall in the larger openings. The curve is based 
on using jumbo drills and LHD haulage. Assume the opening is at a 10° angle. The 
cost per meter of advance does not change for angles 5° to 15°. 

Total cost per meter is the sum of three separate cost curves (labor, supplies, 
and equipment operation) based on a face area (X), in square meters. The curves are 
valid for areas between 4 and 50 m^, operating one shift per day. The cost per 
meter is multiplied by the total meters of excavation needed during development to 
obtain the capital cost. 

Services installed include water and compressed air lines, and heavy duty steel- 
reinforced vent tubing. Rock competency is considered good, with just 10% of the 
back requiring rock bolting. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 42. 779 (X)°* 789 

The operating labor costs are distributed as follows: 

Direct labor 93% 

Maintenance labor 7% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Miners 63% $18.11 

Helpers 23% 13.66 

LHD operator 14% 15.89 

The average wage for labor is $16.78 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 48.709 (X)°- 567 

The supply cost consists of 40% explosives, 44% steel items, and 16% miscellan- 
eous items. Supplies include drill bits and steel, powder, caps, primer, rock- 
bolts, vent line, compressed air and water pipes. 

(E) Equipment Operating Cost (Y E ) = 1.498 (X) 1 ,303 

The equipment operating cost consists of 49% for repair parts, 32% for fuel and 
lubrication, and 19% for tires. The equipment operating curve covers daily 
maintenance and repair, repair parts, and lubrication for drills, fans, LHD's, 
and other equipment used to drive the opening. 



315 

ADJUSTMENT FACTORS 

Rock Hardness Factor Drifting productivity is directly related to rock hardness. 
If the compressive strength of the rock is known, or an estimate can be made 
from table A-l in the appendix, multiply the costs obtained from the curves by 
the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) - 093 

Supply factor (F s ) = 0.579(C) * 054 

Equipment operation factor (F E ) = 0.715(C) 0,033 

where C = compressive rock strength, in pounds per square inch. 

Rockbolt Factor For regular bolting of the entire drift (1.2 bolts per square 
meter) multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) =1.08 

Supply factor (F s ) = 1.14 

Equipment operation factor (Fg) ~1«42 

Shotcrete Factor If the drift is to be shotcreted, multiply the costs obtained 
from the curves by the following factors: 

Labor factor (F L ) = 1.03 

Supply factor (F s ) =1.24 

Equipment operation factor (Fg^ = 1*15 

Concrete Factor If the drift is to be lined with concrete, multiply the costs 
obtained from the curves by the following factors: 

Labor factor (F L ) = 1.64 

Supply factor (F s ) = 1.72 

Equipment operation factor (Fg) = 2.26 

Steel Set Factor If steel sets are to be used, multiply the costs obtained from 
the curves by the following factors: 

Labor factor (F L ) = 1.37 

Supply factor (Fg) = 2.47 

Equipment operation factor (Fg) = 1.19 



316 



Underground Mining— Capital Costs 



1,000 



a* 

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Y L = 42.779(X) - 789 " 

0.567 ~ 
Y S = 48.709(X) 

Y E = 1.498(X) 
4<X< 50 




















































I III 



10 
FACE AREA, square meters 

4.2.1.6. inclines/declines 



100 



317 
4.2. UNDERGROUND MINING— CAPITAL COSTS 
4.2.1. PREPRODUCTION DEVELOPMENT 
4.2.1.7. LARGE UNDERGROUND EXCAVATIONS 

The costs derived from these curves apply to a horizontal opening driven with a two 
boom jumbo and LHD haulage a distance of 200 m. It is assumed the walls will be 
supported with rockbolts and wire mesh. If the material is to be hauled out of the 
mine, the tonnage attributed to excavating should be added to to the haulage curves 
for the period of time necessary to complete the excavation. It is assumed that 
all equipment needed for the excavation will be required for the mining operation, 
and will be considered in the mine equipment cost curve. 

Total cost per meter is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a face area (X), in square meters. The curves are 
valid for areas between 13.94 and 334.45 m^, operating one shift per day. The 
cost per meter is multiplied by the total meters of excavation needed during 
development to obtain the capital cost. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 10.817 (X) ' 947 

The operating labor costs are distributed as follows: 

Direct labor 91% 

Maintenance labor 9% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Miners 76% $18.11 

Helpers 19% 13.66 

Motor operators 5% 15.89 

The average wage for labor is $17.16 per worker-hour (including burden and 
average shift differential). 

(S) S upply Operating Cost (Y s ) = 23.050(X) * 793 

The supply cost consists of 66% explosives, 28% steel items, and 6% ventilation. 
Supplies include drill bits and steel, powder, caps, primer cord, water pipe, 
compressed air pipe, vent duct, rockbolts and wire mesh. 

(E) Equipment Operating Cost (Y E ) = 1. 739 (X)°* 917 

The equipment operating cost consists of 45% for overhaul and repair parts, 35% 
for tires, and 20% for fuel and lubrication. The equipment operating curve 
covers daily maintenance and overhaul parts and lubrication for drills, fans, 
LHD's, and roof bolters. 



318 

ADJUSTMENT FACTORS 

Track Haulage Factor If track haulage is used, the LHD will be replaced by a 

battery locomotive, overshot mucker, and rail cars. Rubber-tired equipment is 
more expensive to operate than rail-mounted equipment. Therefore, to account 
for cost of the equipment and installing rail, multiply the costs obtained from 
the curves by the following factors: 

Supply factor (F s ) = 1.13 

Equipment operation factor (Fg) = 0.71 

Shotcrete Factor For additional expenses associated with coating the 

excavation to a shotcrete depth of 3.8 cm, multiply the costs obtained from the 
curves by the following factors: 

Labor factor (F L ) = 1.05 

Supply factor (F s ) = 1.59 

Equipment operation factor (Fg) = 1.09 



319 



Underground Mining— Capital Costs 



10,000 



c 
q 

a 

> 
a 

| 1,000 



o 

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0} 

a. 

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u 

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100 



10 



I I I 
















v , ,0.947 
- \= 10.817(X) 

0.793 
Y s = 23.050(X) 

-Ye- 1.739CX) ' 917 
13.94 <X< 334.45 




































S 














































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10 



100 
FACE AREA, square meters 

4.2.1.7. Large underground excavations 



1,000 



320 

4.2. UNDERGROUND MINING— CAPITAL COSTS 
4.2.1. PREPRODUCTION DEVELOPMENT 
4.2.1.8. ORE POCKETS 

The ore pocket curve is based on total capacity in metric tons. To derive the cost 
of an ore pocket for a given capacity, enter the capacity in metric tons. The value 
derived will give the cost for one ore pocket with the entered capacity. The curve 
is based on one pocket per entry, including the cost of excavation and the installa- 
tion of a double-gate ore chute. For this reason, each ore pocket to be costed must 
be entered separately on the curve. 

The total cost of each ore pocket is the sum of three separate curves (labor, 
supplies, and equipment operation) based on the capacity of each ore pocket (X), in 
total metric tons. The curves are valid for capacities between 100 and 10,000 mt, 
operating two shifts per day. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 21.695(X) ' 931 

The operating labor costs are distributed as follows: 

Direct labor 100% 

Maintenance labor 0% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 
per hour 
(base rate) 
Miners 100% $18.31 

Average operating labor cost per worker-hour is $18.31 (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 1.961(X) * 994 

The supply cost consists of 44% explosives, 45% steel items, and 11% miscellan- 
eous items. Supplies include powder, caps, and drill bits and steel. 

(E) Equipment Operating Cost (Y E ) = 6,640.547 (X)°* 009 

The equipment operating cost consists of 98% for the ore gate and repair parts, 
and 2% for fuel and lubrication. The cost covers daily maintenance and repair, 
repair parts, and lubrication for the drills and ore gates, plus the purchase of 
the gates. 



321 

ADJUSTMENT FACTORS 

Rock Hardness Factor Productivity is directly related to rock hardness. If the com- 
pressive strength of the rock is known, or an estimate can be made from table 
A-l in the appendix, multiply the costs obtained from the curves by the 
following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) * 093 

Supply factor (F s ) = 0.579(C) ' 054 

Equipment operation factor (Fg) = 0.715(C) * 033 

where C = compressive rock strength, in pounds per square inch. 

Rockbolt Factor For regular bolting of the entire pocket, (1.2 bolts per square 
meter), multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) =1.08 

Supply factor (Fg) = 1.14 

Equipment operation factor (Fg) = 1.42 

Subcontractor Factor If a subcontractor is used, multiply the costs obtained from 
the curves by the following factors to compensate for subcontractor's markup: 

Labor factor (F L ) =1.5 

Supply factor (Fg) = 1.2 

Equipment factor (Fg) =1.2 



322 



Underground Mining— Capital Costs 



1,000,000 



100,000 



V) 



o 
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I— * 

CO 

o 
o 



10,000 



1,000 



100 



I I I 














, N 0.931 . 
Y L = 21.695(X) 

, . 0.994 
Y s = 1.961 (X) 

, x 0.009 
Y E = 6,640.547(X) 

100 <X< 10,000 
















































^ 










^ 














































y,0< ^"^ 




















P^ 














— p- 


*s* 


Equipment operatio 


^ 


































& 


K&^ 










^ 






<$ 






















































^^ 



























































100 



1,000 
CAPACITY, total metric tons 

4.2.1.8. Ore pockets 



10,000 



323 

4.2. UNDERGROUND MINING— CAPITAL COSTS 
4.2.1. PREPRODUCTION DEVELOPMENT 
4.2.1.9. STOPE PREPARATION 

Stope preparation includes any operation and excavation necessary to bring a stope 
into full-scale production. Stope preparation is, of course, different for every 
mining method, so each method is dealt with individually in the following sections 
In general, however, costs derived from the following curves cover every operation 
and excavation needed to develop the stope for full-capacity extraction, and to 
connect it with the main haulage system. A detailed list of items needed for 
individual methods is provided in each of the following sections. In order to 
obtain an accurate cost estimation, the evaluator must provide the dimensions and 
estimated tonnage of a typical stope designed for the deposit under evaluation. 



324 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

A. 2.1. PREPRODUCTION DEVELOPMENT 

4.2.1.9.1. STOPE PREPARATION 
BLOCK CAVING 

Items needed for preparation of a block caving stope include panel drifts, access 
drifts, grizzly drifts, undercut drifts, draw raises, transfer raises, and cave 
induction. All ore chutes, grizzlies, and support and reinforcement items are 
included in the curve. Costs represent a system in which ore is moved to the main 
haulage level by gravity methods. 

Total cost per block is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a typical block plan view area (X), product of length 
and width, in square meters. The curves are valid for areas between 2,400 and 6,300 
m^ (of any height), operating two shifts per day. The costs are then multiplied 
by the number of blocks required for preproduction development to obtain the capital 
cost. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 573.198(X) * 881 

The operating labor costs are distributed as follows: 

Direct labor 98% 

Maintenance labor 2% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Miners 72% $18.31 

Helpers 24% 13.86 

LHD operators 4% 16.09 

The average wage for labor is $17.15 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 650.100(X) ' 883 

The supply cost consists of 26% steel items, 25% concrete, 20% timber, 18% 
blasting supplies, 5% contingency, 4% drill bits and steel, and 2% all other 
items. Supplies necessary for the development of a block caving stope include 
drill bits and steel, blasting agent, caps, timber, concrete, rail, water and 
compressed air pipe, ventilation ducting, rockbolts, electricity, and steel for 
ore chutes and grizzlies. 

(E) Equipment Operating Cost (Y E ) = 11 .355 (X)°* 885 

The equipment operating cost consists of 76% for maintenance and overhaul parts, 
9% for tires, 8% for fuel, and 7% for lubrication. The equipment curve covers 
daily maintenance and overhaul parts, tires, fuel, and lubrication. Equipment 



325 

used in stope preparation for block, caving includes jacklegs, auxiliary fans, 
overshot muckers, locomotives, ore cars, LHD's, and fan drills. 

ADJUSTMENT FACTORS 

Nongravity Caving Factor If the ore is to be transferred to the main haulage system 
using slushers or LHD's, adjustments must be made to the costs. Multiply the 
costs obtained from the curves by the following factors: 

Slushers: 

Labor factor (F L ) = 0.85 

Supply factor (F s ) = 0.83 

Equipment operation factor (Fg) - 0.99 

LHD's: 

Labor factor (F L ) = 0.60 

Supply factor (F s ) = 0.84 

Equipment operation factor (Fe^ = 0, 77 

Rock Hardness Factor Block caving development costs are directly related to rock 
hardness. If the compressive strength of the rock is known, or an estimate can 
be made from table A-l in the appendix, multiply the costs obtained from the 
equations by the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) ' 093 

Supply factor (F s ) = 0.579(C) * 054 

Equipment operation factor (F E ) = 0.716(C) 0,033 

where C = compressive rock strength, in pounds per square inch. 



326 



10,000 



o 
o 



a. 

M 

o 



en 
■o 

c 
o 
w 

3 
O 



00 

o 
o 



1,000 



100 



10 









Unc 


erground Mining— Capita 


I Costs 


























































































.So 


ppUes^ 




































Labor 






















0.881 
Y L = 573.1 98(X) 

0.883 
Y s = 650.1 00(X) 

0.885 
Y E = 11.355(X) 

2,400 <X< 6,300 












































































£q^ 


itpm 


en* 


01 


3 erati 


on ____ 























1,000 



10,000 
PLAN VIEW AREA, square meters 



100,000 



4.2.1.9.1. Stope preparation 
BLOCK CAVING 



327 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.1. PREPRODUCTION DEVELOPMENT 

4.2.1.9.2. STOPE PREPARATION 

CONTINUOUS MINING 

Continuous miner stopes are initiated with multientry panels directly off the main 
haulage level. The method changes little from the initial cuts to the completion of 
the stope. The cost of the main haulage level cannot be included in the stope prep- 
aration costs since many stopes benefit from this one entry. Because the cost per 
ton of excavation of the production entries from the haulage level is the same as 
that for production mining, no stope preparation cost is required. 

For capital cost estimation, the length of main or secondary haulageways must be 
sufficient to open up the required number of stopes for initial production. 



328 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.1. PREPRODUCTION DEVELOPMENT 

4.2.1.9.3. STOPE PREPARATION 
CUT AND FILL 



Items needed for preparation of a cut-and-fill stope include a crosscut from the 
main haulageway, a blind raise access cut with two ore chutes, a manway, and a 
timber slide, and an initial bottom sill cut. The curves cover stopes ranging from 
2.4 m wide by 61.0 m long to 4.9 m wide by 106.7 m long, and of any reasonable 
height. 

Total cost per stope is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a plan view area (X), product of length and width, in 
square meters. The curves are valid for areas between 140 and 540 m 2 , operating 
two shifts per day. The costs are then multiplied by the number of stopes required 
for preproduction development to obtain the capital cost. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 4,422.948 (X) ' 369 

The operating labor costs are distributed as follows: 

Direct labor 97% 

Maintenance labor 3% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(140 to (340 to per hour 

340 m 2 ) 540m 2 ) (base rate) 

Miners 69% 73% $18.31 

Helpers 25% 23% 13.86 

Motor Operators 6% 4% 16.09 

The average wage for labor is $17.13 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 16,203.090(X) ' 197 

The supply cost consists of 31% timber, 25% blasting supplies, 24% steel items, 
5% drill bits and steel, 5% contingency, 4% ventilation material, 3% sandfill 
preparation material, and 3% electricity and miscellaneous items. Supplies 
necessary for the development of a cut-and-fill stope include drill bits and 
steel, blasting agent, caps, timber, rail, ballast, steel pipe, ventilation 
ducting, rockbolts, burlap, electricity, and steel for ore chutes. 

(E) Equipment Operating Cost (Y E ) = 311 .270 (X) * 201 

The equipment operating cost consists of 85% for maintenance and overhaul parts, 
8% for lubrication, and 7% for ground engaging components. The equipment curve 
covers maintenance and overhaul parts, ground engaging components, and lubrica- 
tion. Equipment used in stope preparation for cut-and-fill mining includes 



329 

jacklegs, stopers, jackhammers, auxiliary fans, overshot muckers, locomotives, 
ore cars, and slushers. 

ADJUSTMENT FACTOR 

Rock Hardness Factor Cut-and-fill stope development costs are directly related to 
rock hardness. If the compressive strength of the rock is known, or an estimate 
can be made from table A-l in the appendix, multiply the costs obtained from 
curves by the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.403(C) - 090 

Supply factor (F s ) = 0.590(C) ' 052 

Equipment operation factor (F E ) = 0.716(C) 0,033 

where C = compressive rock strength, in pounds per square inch. 



330 



Underground Mining— Capital Costs 



100 



10 



a> 

Q. 
O 

+> 

w 



a. 

n 

_. 
a 

~5 



m 

TD 

c 
o 
n 

8 1 

-C 



CO 

o 
o 



0.1 



























___________ 








Labor 


























































Eq 


jipment operatio 


n 










, ,0.369 ' 
Y L = 4,422.948(X) 

0.197 ■ 
Y S =16,203.090(X) 

0.201 . 


















Y E 


140 <X 

■ 


_/U(.XJ 
< 540 





100 



1,000 



PLAN VIEW AREA, square meters 



4.2.1.9.3. Stope preparation 
CUT AND FILL 



331 



4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.1. PREPRODUCTION DEVELOPMENT 

4.2.1.9.4. STOPE PREPARATION 

LONGHOLE-SUBLEVEL 



Items needed for preparation of a sublevel-longhole stope include sublevels, a 
bottom sill cut, a scram drift, crosscuts connecting the bottom sill and scram 
drifts, an access raise, and a slot raise. The curves cover stopes ranging from 5.4 
m wide by 61.0 m high by 76.2 m long to 18.3 m wide by 121.9 m high by 152.4 m long. 

Total cost per stope is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a profile view area (X), product of length and height, 
in square meters. The curves are valid for areas between 4,600 and 18,600 m 2 , 
operating two shifts per day. The costs are then multiplied by the number of stopes 
required for preproduction development to obtain the capital cost. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 357.256(X) * 685 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



95% 
5% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(4,600 to (11,600 to per hour 

11,600 m 2 ) 18,600 m 2 ) (base rate) 

Miners 65% 65% $18.31 

Helpers 22% 22% 13.86 

LHD operators 9% 8% 16.09 

Utility workers 3% 4% 15.94 

Surveyors 1% 1% 15. 08 

The average wage for labor is $17.05 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 363.252(X) * 687 

The supply cost consists of 46% blasting supplies, 16% steel items, 10% drill 
bits and steel, 9% ventilation materials, 9% timber, 5% contingency, and 5% 
electricity and miscellaneous items. Supplies necessary for the development of 
a sublevel-longhole stope include drill bits and steel, blasting agent, caps, 
timber, water and compressed air pipe, ventilation ducting, electricity, and 
rockbolts. 

(E) Equipment Operating Cost (Y E ) = 23. 555 (X) ' 707 

The equipment operating cost consists of 57% for maintenance and overhaul parts, 
19% for tires, 17% for fuel, and 7% for lubrication. The equipment curve 
covers maintenance and overhaul parts, fuel, tires, and lubrication. Equipment 



332 

used in stope preparation for sublevel-longhole mining includes jacklegs , 
auxiliary fans, LHD's, booster compressors, jumbo mounted drifters, and 
airtrack-mounted longhole drills. 

ADJUSTMENT FACTOR 

Rock Hardness Factor Sublevel-longhole stope development costs are directly related 
to rock hardness. If the compressive strength of the rock is known, or an 
estimate can be madefrom table A-l in the appendix, multiply the costs obtained 
from curves by the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.392(C) ' 093 

Supply factor (F s ) = 0.579(C) * 054 

Equipment operation factor (F E ) = 0.716(C) 0,033 

where C - compressive rock strength, in pounds per square inch. 



333 



Underground Mining— Capital Costs 



1,000 



a. 
o 

■*■> 

CO 



a) 

Q. 

(0 

i_ 

"5 



CO 

c 
o 

CO 

•3 

o 



in 
o 
u 



100 



10 





















































































M 


















































































^ 


i9 6 ^^ 














v& 


^ 
























, v 0.685 - 
Y L = 357.256(X) 

, ,0.687 I 
Y s = 363.252(X) - 

/ ^0.707 
Y E = 23.555(X) 


















































4 


,600 <X 


< 1£ 

■ 


5.60C 


) 



1 



1,000 



10,000 
PROFILE VIEW AREA, square meters 

4.2.1.9.4. Stope preparation 
LONGHOLE/SUBLEVEL 



100,000 



334 

4.2. UNDERGROUND MINING—CAPITAL COSTS 

4.2.1. PREPRODUCTION DEVELOPMENT 

4.2.1.9.5. STOPE PREPARATION 
RESUING 

Items needed for preparation of a resuing stope include an access drift along the 
stope in the footwall, a blind raise access cut with two ore chutes and a manway, 
and a starter drift running the length of the stope. The blind raise runs the 
entire height of the stope, and both the raise and the starter drift are driven in 
ore and waste. Ore excavated during development is generally discarded as waste. 
The curves cover stopes ranging from 22.9 m long by 18.3 m high to 45.7 m long by 
38.1 m high, and 1.5 m in width. 

Total cost per stope is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a profile view area (X), product of length and height, 
in square meters. The curves are valid for areas between 350 and 2,000 m 2 , 
operating two shifts per day. The costs are then multiplied by the number of stopes 
required for preproduction development to obtain the capital cost. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 1,077.505(X) 0,448 

The operating labor costs are distributed as follows: 

Direct labor 97% 

Maintenance labor 3% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 

per hour 

(base rate) 

Miners 86% $18.31 

Helpers 9% 13.86 

Motor operators 5% 18.31 

The average wage for labor is $17.80 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 4,004.706 (X)°* 290 

The supply cost consists of 61% steel items, 13% blasting supplies, 12% timber, 
6% ventilation materials, 4% drill bits and steel, 3% contingency, and 1% elec- 
tricity and miscellaneous items. Supplies necessary for the development of a 
resuing stope include drill bits and steel, blasting agent, caps, timber, rail, 
ballast, steel pipe, ventilation ducting, electricity, and steel for ore 
chutes. 

(E) Equipment Operating Cost (Y E ) = 24.097 (X) * 499 

The equipment operating cost consists of 67% for maintenance and overhaul parts, 

16% for ground engaging components, 9% for fuel, and 8% for lubrication. The 



335 

equipment curve covers maintenance and overhaul parts, ground engaging compon- 
ents, fuel, and lubrication. Equipment used in stope preparation for resuing 
includes jacklegs, stopers, auxiliary fans, overshot muckers, locomotives, ore 
cars, and slushers. 

ADJUSTMENT FACTOR 

Rock Hardness Factor Resuing stope development costs are directly related 

to rock hardness. If the compressive strength of the rock is known, or an 
estimate can be made from table A-l in the appendix, multiply the costs 
obtained from curves by the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.403(C) - 090 

Supply factor (F s ) = 0.590(C) ' 052 

Equipment operation factor (F E ) = 0.716(C) 0,033 

where C = compressive rock strength, in pounds per square inch. 



336 



Underground Mining— Capital Costs 



100,000 



a. 
o 

V) 



o 
a. 

m 

k. 
_o 

"o 

■a 



in 
o 
o 



10,000 



1,000 



100 





































































Sup 


















' V 


yD w 






































































































,«r* 


C\o^ 
















*tfr 


0' 


? 1^ 














£<**?! 


"°Sh 






0. 448 ' 
Y L = 1,077.505(X) • 

0.290- 
Y S = 4,004.706(X) 

0.499 






































Y E~ 

' 1 


z.*t.u 

550 <X< 


3 /^A 

1 2.0 

■ 1 


00 

i — i 


— 'j 



100 



1,000 
PROFILE VIEW AREA, square meters 

4.2.1.9.5. Stope preparation 
RESUING 



10,000 



337 



4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.1. PREPRODUCTION DEVELOPMENT 

4.2.1.9.6. STOPE PREPARATION 

ROOM AND PILLAR, MEDIUM TO HARD ROCK 



The main item needed to prepare a metallic room-and-pillar stope is an access drift 
from a main haulageway running the entire length of the panel. 

Total cost per stope is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a plan view area (X), product of length and width, in 
square meters. The curves are valid for areas between 12,900 and 30,200 m 2 (of 
any reasonable height), operating two shifts per day. The costs are then multiplied 
by the number of panels required for preproduction development to obtain the capital 
cost. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 4. 019 (X) * 890 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



92% 
8% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(12,900 to (21,550 to per hour 

21,500 m 2 ) 30,200 m 2 ) (base rate) 

Miners 46% 43% $18.31 

Helpers 11% 22% 13.86 

Utility workers 15% 12% 16.98 

Utility helpers 15% 12% 13.86 

Loader operators 7% 8% 16.53 

Surveyors 6% 3% 15.08 

The average wage for labor is $16.53 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 2.686 (X) * 997 

The supply cost consists of 58% blasting supplies, 12% steel items, 11% drill 
bits and steel, 10% ventilation materials, 5% contingency, and 4% electricity 
and miscellaneous items. Supplies necessary for the development of a metallic 
room-and-pillar stope include drill bits and steel, blasting agent, caps, water 
and compressed air pipe, ventilation materials, electricity, and rockbolts. 

(E) Equipment Operating Cost (Y E ) = 0. 046 (X) 1 ' 128 

The equipment operating cost consists of 59% for maintenance and overhaul parts, 
21% for fuel, 13% for tires, and 7% for lubrication. The equipment curve covers 
maintenance and overhaul parts, fuel, tires, and lubrication. Equipment used in 
stope preparation for metallic room and pillar mining includes auxiliary fans, 
front-end loaders, jacklegs, scissor lifts, and jumbo-mounted drifters. 



338 

ADJUSTMENT FACTOR 

Rock. Hardness Factor Drifting productivity is directly related to rock hardness. 
If the compressive strength of the rock is known, or an estimate can be made 
from table A-l in the appendix, multiply the costs obtained from curves by the 
following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) * 093 

Supply factor (F s ) = 0.579(C) * 054 

Equipment operation factor (F E ) = 0. 715(C) * 033 

where C = compressive rock strength, in pounds per square inch. 



339 



100,000 



o 
o. 
o 



o 

o_ 

n 

L. 

a 
o 



(n 
O 
o 



10,000 



1.000 



10,000 



Underground Mining— Capital Costs 















, s\pfb ^^ „ , 








J^ 


^ 










gS^""^ 








































^ \ 








, ,0.890 - 
Y L = 4.01 9(X) 

Y s = 2.686(X) -" 7 

Y E =0.046(X) 1J2B 

12,900 <X< 30,200 


^ 


tyX 






1 



100,000 



PLAN VIEW AREA, square meters 



4.2.1.9.6. Stope preparation 
ROOM & PILLAR. MEDIUM TO HARD ROCK 



340 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.1. PREPRODUCTION DEVELOPMENT 

4.2.1.9.7. STOPE PREPARATION 

ROOM AND PILLAR, NONMETALLIC SOFT ROCK 



The main item needed to develop a nonmetallic room-and-pillar stope consists of an 
access drift from a main haulageway running the entire length of the panel. 

Total cost per stope is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a plan view area (X), product of length and width, in 
square meters. The curves are valid for areas between 14,800 and 33,500 m 2 (of 
any height), operating two shifts per day. The costs are then multiplied by the 
number of panels required for preproduction development to obtain the capital cost. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 43.903(X) * 557 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



93% 
7% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(14,800 to (24,150 to per hour 

4,150 m 2 ) 33,500 m 2 ) (base rate) 

Miners 15% 23% $18.31 

Loader operators 10% 15% 16.53 

Shuttle operators 10% 15% 16.09 

Utility workers 29% 23% 16.98 

Utility helpers 24% 16% 13.86 

Surveyors 12% 8% 15.08 

The average wage for labor is $16.30 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 20.909 (X) ' 632 

The supply cost consists of 63% steel items, 10% drill bits and steel, 10% 
blasting supplies, 5% electricity, 4% ventilation materials, 4% contingency, and 
hX miscellaneous items. Supplies necessary for the development of a nonmetal- 
lic room-and-pillar stope include drill bits and steel, blasting agent, caps, 
water and compressed air pipe, ventilation materials, electricity, and rock- 
bolts. 

CE) Equipment Operating Cost (Y E ) = 0.117 (X)°* 908 

Trie equipment operating cost consists of 69% for maintenance and overhaul parts, 
17% for tires, 11% for lubrication, and 3% for fuel. The equipment curve covers 
maintenance and overhaul parts, fuel, tires, and lubrication. Equipment used in 
stope preparation for nonmetallic room-and-pillar mining includes roof bolters, 



341 



ANFO trucks, undercutters, loaders, shuttle cars, portable transformers-recti- 
fiers, and jumbo-mounted drifters. 

ADJUSTMENT FACTOR 

Rock Hardness Factor Drifting productivity is directly related to rock hardness. 
If the compressive strength of the rock is known, or an estimate can be made 
from table A-l in the appendix, multiply the costs obtained from curves by the 
following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) - 0.388(C) * 093 

Supply factor (F S ) = 0.579(C) ' 054 

Equipment operation factor (F E ) = 0.715(C) 0,033 

where C - compressive rock strength, in pounds per square inch. 



34: 



100,000 



© 

c 
o 
a. 

k. 
v 

a 

n 

k. 
jo 

o 

"O 

in" 

I- 

o 

o 



10,000 



1,000 



100 



10,000 



Underground Mining-Capital Costs 













































^fabor 
















































• **c 


> 095^^ 
r&t-^^ r 








€J*>^ 




, N 0.557 I 
Y L = 43.903(X) 

Y s = 20.909(X)°' 632 _ 

, . 0.908 
Y E = 0.117(X) 

14,800 <X< 33,500 


^ 
















h - ( 



100,000 



PLAN VIEW AREA, square meters 



4.2.1.9.7. Stope preparation 
ROOM it PILLAR, NONMETALUC SOFT ROCK 



4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.1. PREPRODUCTION DEVELOPMENT 

4.2.1.9.8. STOPE PREPARATION 
SHRINKAGE 



343 



Items needed for preparation of a shrinkage stope include a bottom sill cut, a scram 
drift, crosscuts from the scram to the bottom sill drift, an access raise, and dog- 
holes along the raise to connect with the stope as mining progresses. The curves 
are based on the assumption that ore will be drawn from the crosscuts using LHD's. 
Stopes ranging from 2.4 m wide by 45.7 m long to 5.5 m wide by 76.2 m long are 
covered by the curve. Stope height is fixed at 61 m. 

Total cost per stope is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a plan view area (X), product of length and width, in 
square meters. The curves are valid for areas between 100 and 440 m^, operating 
two shifts per day. The costs are then multiplied by the number of stopes required 
for preproduction development to obtain the capital cost. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 9, 917. 618 (X) ' 329 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



96% 
4% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(100 to (270 to per hour 

270 m 2 ) 440 m 2 ) (base rate) 

Miners 70% 65% $18.31 

Helpers 23% 27% 13.86 

LHD operators 7% 8% 16.09 

The average wage for labor is $17.09 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 7,445.199 (X) * 335 

The supply cost consists of 37% blasting supplies, 19% steel items, 15% timber, 
11% ventilation materials, 9% drill bits and steel, 5% contingency, and 4% elec- 
tricity and miscellaneous items. Supplies necessary for the development of a 
shrinkage stope include drill bits and steel, blasting agent, caps, timber, 
water and compressed air pipe, ventilation ducting, electricity, and rockbolts. 

(E) Equipment Operating Cost (Y E ) = 373. 610(X) 0,388 

The equipment operating cost consists of 64% for maintenance and overhaul parts, 
20% for tires, 10% for fuel, and 6% for lubrication. The equipment curve covers 
maintenance and overhaul parts, fuel, tires, and lubrication. Equipment used in 

stope preparation for shrinkage mining includes stopers, jacklegs, auxiliary 
fans, LHD's, and jumbo-mounted drifters. 



344 

ADJUSTMENT FACTOR 

Rock. Hardness Factor Shrinkage stope development costs are directly related to rock 
hardness. If the compressive strength of the rock is known, or an estimate can 
be made from table A-l in the appendix, multiply the costs obtained from curves 
by the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) - 0.399(C) 0,091 

Supply factor (F s ) = 0.585(C) 0,053 

Equipment operation factor (F E ) = 0.717(C) 0,033 

where C = compressive rock strength, in pounds per square inch. 



345 



100,000 



43 
Q. 

o 



a. 



w 10,000 
a 

"o 
■o 



O 
o 



1,000 



Underground Mining— Capital Costs 













taboL- ■ — ""■" 








Supp^if^^ — " 












Y L = 9,91 7.61 8(X)°' 329 

0.335 . 
Y s = 7,445.1 99(X) 

. v 0.388 
Y E = 373.61 0(X) 

100 < X < 440 






























Equiprne]] 


t ope[5^!l— — < 



















100 



1,000 



PLAN VIEW AREA, square meters 

4.2.1.9.8. Stope preparation 
SHRINKAGE 






346 

4.2. UNDERGROUND MINING - CAPITAL COSTS 

4.2.1. PREPRODUCTION DEVELOPMENT 

4.2.1.9.9. STOPE PREPARATION 
SQUARE SET 



Items needed for preparation of a square set stope include a crosscut from the main 
haulageway, an initial bottom sill cut, and a blind raise access cut with two ore 
chutes, a manway, and a timber slide. The curves cover stopes ranging from 2.4 m 
wide by 45.7 m long to 4.9 m wide by 76.2 m long, and of any reasonable height. 

Total cost per stope is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a plan view area (X), product of length and width, in 
square meters. The curves are valid for areas between 100 and 400 m 2 , operating 
two shifts per day. The costs are then multiplied by the number of stopes required 
for preproduction development to obtain the capital cost. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 6, 114. 261 (X) * 340 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



97% 
3% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(100 to (250 to per hour 

250 m 2 ) 400 m 2 ) (base rate) 

Miners 69% 73% $18.31 

Helpers 26% 24% 13.86 

Motor operators 5% 3% 16.09 

The average wage for labor is $16.93 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 17,393.433(X) * 208 

The supply cost consists of 43% timber, 20% steel items, 19% blasting supplies, 
9% contingency, 3% drill bits and steel, 3% ventilation materials, and 3% elec- 
tricity and miscellaneous items. Supplies necessary for the development of a 
square set stope include drill bits and steel, blasting agent, caps, timber, 
blocking, rail, ballast, steel pipe, ventilation ducting, electricity, and steel 
for ore chutes. 

(E) Equipment Operating Cost (Y E ) = 375.160(X) 0,178 

The equipment operating cost consists of 83% for maintenance and overhaul parts, 
10% for lubrication, and 7% for ground engaging components. The equipment curve 
covers maintenance and overhaul parts, ground engaging components, and lubrica- 
tion. Equipment used in stope preparation for square set mining includes jack- 
legs, stopers, auxiliary fans, overshot muckers, locomotives, ore cars, and 
slushers. 



347 

ADJUSTMENT FACTOR 

Rock Hardness Factor Square set stope development costs are directly related to 

rock hardness. If the compressive strength of the rock is known, or an estimate 
can be made from table A-l in the appendix, multiply the costs obtained from 
curves by the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.403(C) ' 090 

Supply factor (F s ) - 0.590(C) ' 052 

Equipment operation factor (F E ) = 0. 716(C) '°33 

where C = compressive rock strength, in pounds per square inch. 






100,000 



o 

(0 



0) 
Q. 

U) 

"o 



en 
O 
o 



10,000 



1.000 



100 



Underground Mining— Capital Costs 











Supplies 








labor _____ — 




































































Eauipment 


operation 























Y L = 6,11 4.261 (X)°- 340 

0.208I 
Ys= 17,393.433(X) 

, v0.178 














T E 


100 < 


1 \J \J{/\J 

X< 40C 

I 


) 



100 



1,000 



PLAN VIEW AREA, square meters 



4.2.1.9.9. Stope preparation 
SQUARE SET 



349 



4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.1. PREPRODUCTION DEVELOPMENT 

4.2.1.9.10. STOPE PREPARATION 

VERTICAL CRATER RETREAT 



Items needed for preparation of a vertical crater retreat stope include a topsill 
cut, a bottom sill cut, and access drifts. The curves are based on the assumption 
that, during production, ore will be drawn from the bottom sill using remote con- 
trolled LHD's. Stopes ranging from 4.6 to 11.6 m wide are covered by the curves. 
Stope length is estimated at 61 m, but may be varied plus or minus 25% without 
affecting the accuracy of the calculations. Stope height must be within the limits 
of down-the-hole drills. 

Total cost per stope is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a plan view area (X), product of length and width, in 
square meters. The curves are valid for areas between 250 and 750 m 2 , operating 
two shifts per day. The costs are then multiplied by the number of stopes required 
for preproduction development to obtain the capital cost. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 2 ,254.882(X) ' 464 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



94% 
6% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(250 to (500 to per hour 

500 m 2 ) 750 m 2 ) (base rate) 

Miners 60% 64% $18.31 

Helpers 24% 23% 13.86 

LHD operators 10% 10% 16.09 

Utility workers 4% 2% 15.42 

Surveyors 2% 1% 15.08 

The average wage for labor is $16.96 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 1,086. 699 (X) * 642 

The supply cost consists of 51% blasting supplies, 20% steel items, 11% drill 
bits and steel, 10% ventilation materials, 5% contingency, and 3% electricity 
and miscellaneous items. Supplies necessary for the development of a vertical 
crater retreat stope Include drill bits and steel, blasting agent, caps, water 
and compressed air pipe, ventilation ducting, electricity, and rockbolts. 

(E) Equipment Operating Cost (Y E ) = 10. 062 (X)°* 969 

The equipment operating cost consists of 64% for maintenance and overhaul parts, 



350 

19% for tires, 11% for fuel, and 6% for lubrication. The equipment curve covers 
maintenance and overhaul parts, fuel, tires, and lubrication. Equipment used in 
stope preparation for vertical crater retreat mining includes LHD's, jacklegs, 
auxiliary fans, and jumbo-mounted drifters. 

ADJUSTMENT FACTOR 

Rock Hardness Factor Vertical crater retreat stope development costs are 

directly related to rock hardness. If the compressive strength of the rock is 
known, or an estimate can be made from table A-l in the appendix multiply the 
costs obtained from curves by the following factors (base rock strength = 
31,700 psi): 

Labor factor (F L ) = 0.404(C) ' 089 

Supply factor (F s ) - 0.584(C) ' 053 

Equipment operation factor (F E ) = 0.716(C) ' 033 

where C = compressive rock strength, in pounds per square inch. 



351 



Underground Mining— Capital Costs 



100,000 



© 
a. 
o 

V) 



a> 
a. 



£ 10,000 

~5 
•a 



CO 

O 

o 



1,000 

























so 






























464 
Y L = 2,254.882(X) * 

" Y s = 1,086.699(X)°' 642 

, x 0.969 
Y E = 10.062(X) 

250 <X< 750 








n ^ 






^ 


>^>^ 








V w * /" 




^ 


^ 

















100 



1,000 



PLAN VIEW AREA, square meters 



4.2.1.9.10. Stope preparation 
VERTICAL CRATER RETREAT 



352 

4.2. UNDERGROUND MINING—CAPITAL COSTS 
4.2.1. PREPRODUCTION DEVELOPMENT 
4.2.1.10. MINE DEWATERING 

The capital cost for mine dewatering is based on the utilization of vertical turbine 
pumps, including the cost of acquisition and installation of equipment. 

The initial capital cost is based on a quantity of water in cubic meters pumped 
per day against a total dynamic head of 305 m (1,000 ft). The total dynamic head is 
the sum of the static head, the friction loss due to pipes and fittings, and the 
velocity head, minus the suction head. If the suction head is negative (suction 
lift), its value must be added to obtain the total dynamic head. The curve includes 
all costs associated with the acquisition and installation of required pumps and 
pump bases. 

The total capital cost is based on a single cost curve having an water pumping rate 
(X), in cubic meters per day. The curve is valid for pumping rates between 2,000 
and 60,000 m^/d, operating three shifts per day. 

BASE CURVE 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 7% 

Construction supply cost 2% 

Purchased equipment cost 91% 

The total mine dewatering capital cost is (Y c ) = 103. 876 (X) * 718 and is distri- 
buted as follows: 



(L) Construction Labor Cost (Y L ) = 6.544(X) * 718 
(S) Construction Supply Cost (Y s ) = 2.181(X)°* 718 
(E) Purchased Equipment Cost (Y E ) = 95.150(X)°* 718 



CAPITAL COST DURING MINE DEWATERING 

The capital cost is based on a quantity of water in cubic meters pumped per day 
against a total dynamic head of 305 m (1,000 ft). It is assumed that mine discharge 
and drilling water lines are left in place and are usable for mine dewatering 
purposes. 

The daily cost during mine dewatering is the sum of three separate cost curves 
(labor, supplies, and equipment operation) based on the the quantity of water pumped 
(X), in cubic meters per day. The curves are valid for quantities from 2,000 and 
60,000 m3, operating three shifts per day. The daily cost is multiplied by the 
total number of days allowed for dewatering the mine. 



353 

BASE CURVE 

(L) Labor Operating Cost (Y L ) = 3,283.826(X) 0,368 

The operating labor costs are distributed as follows: 

Direct labor 82% 

Maintenance labor 18% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Pumpman 42% $15.44 

Mechanics /electricians 15% 15.44 

Underground miners 43% 18.11 

Average operating labor cost per worker-hour is $16.58 (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 1.438 (X) 1 * 177 

The supply cost consists of 90% electric power and 10% miscellaneous items such 
as lagging, hangers, brackets, and electrical fuses required during the mine 
dewatering period. 

(E) Equipment Operating Cost (Y E ) = 0. 017 (X) 1 ' 143 

The equipment operating cost consists of 85% for repair parts and materials and 
15% for lubrication. 

ADJUSTMENT FACTORS 

The capital cost curve during mine dewatering is based on a total dynamic head (TDH) 
of 305 m (1,000 ft). The cost curve is smoothed out on an average of 120 days 
allowed for mine dewatering task. 

Dynamic Head Factor The capital cost curve is based on 305 m (1,000 ft) of TDH. 
For variation in the total dynamic head, multiply the costs obtained from the 
curves by the following factor: 

Dynamic head factor (F H ) = 0.003(H) 
where: H = total dynamic head, in meters. 

Days Factor For variation in the number of days worked, multiply the costs obtained 
from the curves by the following factor: 

Days factor (F D ) = 0.008(D) 

where: D = total number of days allowed for mine dewatering. 



354 



Underground Mining— Capital Costs 



1,000,000 



n 

o 

"5 
-o 



CO 

o 
o 



100,000 



10,000 



























































































































































































Y C =103.876(X)°" 71 ~ 
2,000 <X< 60,000 
















I III 



1,000 10,000 

WATER PUMPED, cubic meters per day 

4.2.1. 10.a Mine dewatering 



100,000 



355 



Underground Mining— Capital Costs 



1,000,000 



100,000 



O 

■o 

0) 

Q. 



o 10,000 



o 
■a 



to 
O 
O 



1,000 



100 

























































^^ 
































u 


jbo 


r^^ 






































^ 


o&* "^ 


















Y T 


































































0.3oo 
" Y L - 3,283.826(X) 

Y s = 1.438(X) 1 ' 177 

Y E = 0.017(X) 
* 2,000 <X< 60,000 




















/ 




















^\4 


* 










^dC°\ 










,/ 


Ksr 














I S 


■fP 


{. 












^ 


s&* 


^ 

































1,000 10,000 

WATER PUMPED, cubic meters per day 

4.2.1.1 0.b Mine dewatering 



100,000 



356 

4.2. UNDERGROUND MINING— CAPITAL COSTS 
4.2.1. PREPRODUCTION DEVELOPMENT 
4.2.1.11. MINE REHABILITATION 

The capital cost for mine rehabilitation is based on the assumption that the mine 
equipment and surface mine plant have been maintained under a minimal repair and 
maintenance schedule and are functional prior to rehabilitation activities; there- 
fore, no capital cost is included for equipment purchase. 

The total cost is the sum of three separate cost curves (labor, supplies, and equip- 
ment operation) based on a mine production rate (X), in metric tons material per 
day. The curves are valid for rates between 200 and 40,000 mtpd, operating one 
shift per day. The total rehabilitation cost is obtained by multiplying the daily 
cost by the number of days allowed for the mine rehabilitation. 

BASE CURVE 

(L) Labor Operating Cost (Y L ) = 37,186.450(X) * 292 

The operating labor costs are distributed as follows: 

Direct labor 83% 

Maintenance labor 7% 

Supervision 10% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Unde rground miners 50% $18.11 

LHD Miners 23% 16.33 

Hoistman 10% 15.44 

Mechanics /electricians 7% 15.44 

Supervision 10% 22.08 

The average wage for labor is $17.52 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (YS) = 23,064.633(X) - 367 . 

The supply cost consists of 49% electric power cable, 34% ground support, 7% 
electric power, 2% blasting agent and caps, and 8% miscellaneous items. The 
miscellaneous items include small tools, ventilation duct, hose, pipe and 
valves, etc. 

(E) Equipment Operating Cost (YE) = 1, 510.633(X) * 438 . 

The equipment operating cost consists of 89% for repair parts and materials, 5% 
for lubrication, and 6% for miscellaneous costs. The miscellaneous costs con- 
sist of ancilliary equipment operation such as mine hoist, compressed air, and 
mine ventilation plant needed during mine rehabilitation. 



357 

ADJUSTMENT FACTORS 

Ground Conditions Factors The cost curves for mine rehabilitation are based on fair 
ground conditions. To adjust the curves for poor ground conditions, multiply 
the costs obtained from the curves by the following factors: 

Labor factor (Fg poOR.) = 1*25 

Supply factor (Fg poOR.) = 1.11 

Equipment operation factor (Fg poOR.) = 1»25 

Conversely, to adjust the curves for good ground conditions, multiply the op- 
erating costs by the following factors: 

Labor factor (F L GOOD^ = °' 90 

Supply factor (F s QOOD^ = °' 95 

Equipment operation factor (Fg GOOD^ = 0*90 



358 



Underground Mining— Capital Costs 



10,000 



D 

-o 

L. 

ai 
o. 

w 

L. 

V 

o 



W 

-a 

c 

D 
W 

3 
O 



o 
o 



1,000 



100 



10 



I I I I I I 




















, ,0.292 
- Y L = 37,186.450(X) 

Y S =23,064.633(X)°' 3€ 

, N 0.438 
Y E = 1,510.633(X) 

200< X< 40,000 
























































































SO 


a V\eS ^ 
























?" 






























V 


at 


>or 


























\_ 
























































.d 


; N oV 




























3 J 
























V$ 


>tf 


to^ 















































































100 1,000 10,000 

ORE AND WASTE, metric tons per day 



100,000 



4.2.1.11. Mine rehabilitation 



359 
4.2. UNDERGROUND MINING— CAPITAL COSTS 
4.2.3. MINING EQUIPMENT 
4.2.3.1. HOISTING FACILITIES 

Selection of a mine hoist involves consideration of three sophisticated systems: 
mechanical, electrical, and the mine shaft. Each of these systems are dependent on 
numerous variables that are site-specific for each hoisting operation. To reduce 
complexities involved in determining capital costs, this section will deal with the 
two most common hoisting systems, double-drum and friction hoists. 

When selecting the type of hoisting system, the estimator should consider the 
following: 

1. Double-drum hoists are applicable to multilevel hoisting for all sizes of 
mines. 

2. Friction hoists are applicable for deep level (+915 m) and /or single level 
hoisting. 

3. Mines that hoist over 4,000 mtpd often have more than one hoist (i.e., one 
hoist may haul ore and waste and one hoist may be used for servicing the mine). The 
costs are only applicable for one hoist. If more than one hoist is required, recal- 
culate the curve(s) for each additional hoist (see ADJUSTMENTS for service hoists). 

4. Mines that hoist over 20,000 mtpd typically have more than one production 
hoist in conjunction with at least one service hoist. 

5. In choosing a hoisting system it is best to remember that these facilities 
are usually designed for a higher capacity than required. This is especially true 
for smaller mines or mines anticipating an increase in capacity (i.e. a hoist 
operating at 100 mtph may have a design capacity of 200 mtph). 

6. Single hoist mines typical hoist muck for about 80% of the daily schedule 
(i.e. , 13 h of a 16 h work, day), the remaining 20% of the schedule is devoted to 
transporting personnel and supplies and performing maintenance. Mines serviced by 
more than one production hoist typically hoist muck about 90% of the daily schedule. 

BASE CURVE 

The total capital cost is based on two single cost curves having a design capacity 
(X), in metric tons of ore and waste hoisted per hour. The curve is valid for capa- 
cities between 100 and 800 mtph. The curve includes costs associated with purchas- 
ing and erecting head frame, hoist house, hoist equipment, and ore and waste surge 
bins. Cost of collar foundation work and shaft loading pockets are covered in the 
section on shafts. 



360 

The capital cost derived from the curve is a combination of the following costs: 

Double-drum hoist 

Construction labor cost 20% 

Construction supply cost 43% 

Purchased equipment cost 37% 

Friction hoist 

Construction labor cost 18% 

Construction supply cost 30% 

Purchased equipment cost 52% 

The total double-drum hoisting facility capital cost is 

( Y C DOUBLE-DRUM^ = 12, 131. 769 (X) 1,026 and is distributed as follows: 

(L) Construction Labor Cost (Y L DOUBLE-DRUM^ = 2,426.354(X) 1 * 026 

(S) Construction Supply Cost (Yg DOUBLE-DRUM^ = 5,216.661(X) 1,026 

(E) Purchased Equipment Cost (Y E DOUBLE-DRUM^ = 4,488.754(X) 1,026 

The total friction hoisting facility capital cost is 

< Y C FRICTION) = 9,279.338(X) * 918 and is distributed as follows: 

(L) Construction Labor Cost (Y L FRICTION) = 1,670. 281(X) * 918 

(S) Construction Supply Cost (Y s FRICTION) = 2,783.801(X)°* 9i8 

(E) Purchased Equipment Cost (Y E FRICTION) = 4,825.256(X) * 918 

ADJUSTMENT FACTORS 

Depth Factor To determine the capital cost for hoist facilities whose maximum hoist 
depth varies from 915 m (3,000 ft), multiply the cost obtained from the curve by 
the following factor: 

Double-drum hoist: 

Depth factor (F D ) = 0.094(D) * 345 

Friction hoist: 

Depth factor (F D ) = 0.112(D) * 322 

where D = maximum hoisting depth from surface, in meters. 

Service Hoist If a hoist is to be used for service hoisting only (typical for op- 
erations which the production hoist is over 4,000 mtpd), enter the nonproduction 
hoist curve at 33% the production hoist capacity and use this value in the 
hoisting equations. 

Service hoist (Xs) - 0.33(X) 



361 



Underground Mining— Capital Costs 



100,000 



71 

a 
o 



n 

c 
o 

0) 

o 

x: 



o 
o 



10,000 



1,000 



100 



- • 

Double— drum 

, J.026 
Y c = 12.131.768(X) 

100 < X < 800 






















































^ 












*£ 










oo^ 






-- 






rftf*^ 


















^^-^ 










^^ 
























Friction 

0.918 
Y C = 9,279.338(X) 

100 < X < 800 














i i i 



100 



1.000 



ORE AND WASTE, metric tons per hour 
4.2.3.1. Hoisting facilities 



362 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.3. MINING EQUIPMENT 

4.2.3.2.1. DRILL, BLAST, AND MISCELLANEOUS EQUIPMENT 
JACKLEGS 

This section covers costs associated with a mine using jacklegs, stopers, and 
drifters as their primary drill equipment. For mines using jumbos as their primary 
drill equipment, refer to section 4.2.3.2.2. 

The capital cost curve for drill, blast, and miscellaneous support equipment in- 
cludes the purchase of underground equipment and items not previously included in 
other sections. The cost is based on the purchased equipment curve with a produc- 
tion rate (X), in metric tons material per day. The curve is valid between 100 to 
10,000 mtpd, operating two shifts per day. These costs are based on equipment 
being delivered and made fully operable at an appropriate site in the Denver, CO 
area. Provision is made for standby equipment, spare parts, administrative, and 
maintenance units. 

The costs on the curve are directly related to daily metric tons of production using 
jacklegs and related drilling equipment. Any costs associated with different drill- 
ing equipment (e.g., jumbos) should be costed using the appropriate curve. The 
drilling costs are to be added to costs from the appropriate haulage curves for the 
total capital equipment cost of the operation. 

The equipment contained in this curve includes drills and support equipment. Hoist- 
ing, ventilation, compressed air, pumping equipment, and power transmission lines 
are included in other capital cost sections. 

BASE CURVE 

(E) Purchased Equipment Cost (Y E ) = 1 ,204.235(X) * 944 

The equipment operating cost consists of 50% for drills and 50% for miscellan- 
eous equipment. 

ADJUSTMENT FACTOR 

Shift Factor The curve is based on a two-shift operation. Costs can be estimated 
for one- or three-shift operations by dividing the base number of shifts (2) by 
the actual number of shifts (1 or 3) to obtain a shift factor (F^). The shift 
factor (F^) is then multiplied by the actual daily tonnage (X) to derive the 
adjusted feed rate (X^). Costs can then be estimated by using (Xi) as input 
to the equation. 



363 



Underground Mining— Capital Costs 



10,000 



to 

L. 

=5 1,000 



tn 
-a 

c 
o 

W 

D 

o 

-C 



O 
O 



100 



10 















































































































s* 


' 


































































































































































, 0.944 
Y E = 1,204.235(X) 

100 <X< 10,000 
















i iii 



100 



1,000 
MATERIAL, metric tons per day 



10,000 



4.2.3.2.1. Drill, blast, and misc. equipment 
JACKLEGS 



364 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.3. MINING EQUIPMENT 

4.2.3.2.2. DRILL, BLAST, AND MISCELLANEOUS EQUIPMENT 
JUMBOS 

This section covers costs associated with a mine using jumbos as their primary drill 
equipment. For mines using jacklegs, stopers, and drifters as their primary drill 
equipment, refer to section 4.2.3.2.1. 

The capital cost curve for drill, blast, and miscellaneous support equipment in- 
cludes the purchase of underground equipment and items not previously included in 
other sections. The cost is based on the purchased equipment curve with a produc- 
tion rate (X), in metric tons material per day. The curve is valid between 3,500 to 
50,000 mtpd, operating two shifts per day. These costs are based on equipment 
being delivered and made fully operable at an appropriate site in the Denver, CO 
area. Provision is made for standby equipment, spare parts, administrative, and 
maintenance units. 

The costs on the curve are directly related to daily metric tons of production using 
jumbos and related drilling equipment. Any costs associated with different drilling 
equipment (e.g., jacklegs) should be costed using the appropriate curve. The 
drilling costs are to be added to costs from the appropriate haulage curves for the 
total capital equipment cost of the operation. 

The equipment contained in this curve includes drills, roof bolters, and support 
equipment. Hoisting, ventilation, compressed air, pumping equipment, and power 
transmission lines are included in other capital cost sections. 

BASE CURVE 

(E) Purchased Equipment Cost (Y E ) = 2,047.370(X) * 839 

The equipment operating cost consists of 50% for drills and 50% for miscellan- 
eous equipment. 



365 



Underground Mining— Capital Costs 



100,000 



(0 

a 
"o 



(0 

I 10,000 
to 

3 
O 



in 
o 
o 



1,000 





































































































































/. 




















/ 
































/ 




, ,0.839 - 
Y E = 2,047. 370(X) 

3,500 <X< 50,000 
















I 111 



1,000 10,000 

MATERIAL, metric tons per day 

4.2.3.2.2. Drill, blast, and misc. equipment 
JUMBOS 



100,000 



366 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.3. MINING EQUIPMENT 

4.2.3.3. CONTINUOUS MINERS 

This section covers costs associated with a mine using continuous miners, shuttle 
cars, and rock bolters. Costs in this curve cover the use of shuttle cars to move 
the ore (about 100 m) to a conveyor loading point. The costs associated with the 
conveyor haulage equipment are covered in sections 4.2.3.5. and 4.2.3.6. 

The capital cost curve for continuous miners and related equipment includes the pur- 
chase of underground equipment and items not previously included in other sections. 
The cost is based on the purchased equipment curve with a production rate (X), in 
metric tons material per day. The curve is valid between 2,000 to 30,000 mtpd, 
operating two shifts per day. These costs are based on equipment being delivered 
and made fully operable at an appropriate site in the Denver, CO area. Provision is 
made for standby equipment, spare parts, administrative, and maintenance units. 

The costs on the curve are directly related to daily metric tons of production using 
continuous miners. Any costs associated with different equipment (e.g., jacklegs) 
should be costed using the appropriate curve. The continuous miner costs are to be 
added to costs from the appropriate haulage curves (e.g., conveyor haulage equip- 
ment) for the total capital equipment cost of the operation. 

The equipment contained in this curve includes continuous miners, shuttle cars, rock 
bolters, and support equipment. Hoisting, ventilation, compressed air, pumping 
equipment, and power transmission lines are included in other capital cost sections. 

BASE CURVE 

(E) Purchased Equipment Cost (Y E ) = 1,899.425(X)°* 969 

The equipment operating cost consists of 95% for continuous mining equipment and 
5% for miscellaneous equipment. 



367 



Underground Mining— Capital Costs 



100,000 



n 
v 
~o 



n 
-a 

c 
o 

3 10,000 
o 



O 
O 



1,000 





















































































































































/ 




















, ,0.969 
Y E =1,899.425(X) 

2,000 <X< 30,000 
















l III 



1.000 



10.000 
MATERIAL, metric tons per day 

4.2.3.3. Continuous miners 



100.000 



368 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.3. MINING EQUIPMENT 

4.2.3.4. DRIFT-TUNNEL BORING MACHINES 

This section covers costs associated with a mine using drift-tunnel boring and asso- 
ciated equipment. Costs in this curve cover the use of rail cars to move the mater- 
ial. 

The capital cost curve for drift-tunnel boring and related equipment includes the 
purchase of underground equipment and items not previously included in other sec- 
tions. The cost is based on the purchased equipment curve with a face diameter ex- 
cavated by the borer (X), in meters. The curve is valid between 2.74 and 10.67 m. 
These costs are based on equipment being delivered and made fully operable at an 
appropriate site in the Denver, CO, area. Provision is made for backup equipment, 
administrative, and maintenance units. 

The costs on the curve are directly related to the face diameter of the drift-tunnel 
boring machine. Any costs associated with different equipment (e.g., jacklegs) 
should be costed using the appropriate curve. The drift-tunnel boring costs are to 
be added to costs from other applicable equipment curves (e.g., conveyor haulage 
equipment) for the total capital equipment cost of the operation. 

The equipment contained in this curve includes drift-tunnel borers, a rail system 
for the machine, and support equipment. Hoisting, ventilation, compressed air, 
pumping equipment, and power transmission lines are included in other capital cost 
sections. 

BASE CURVE 

(E) Purchased Equipment Cost (Y E ) = 737, 914.900(X) 1 * 119 

The equipment operating cost consists of 75% for drift-tunnel boring machine, 
16% for support equipment, and 9% for miscellaneous equipment. 



369 



Underground Mining— Capital Costs 



100,000 



n 
o 
15 



n 
■a 



| 10,000 



en 

O 



m 
o 

o 



1,000 





























































































/ 


















/' 










































































, J.119 . 












2.7 


57,91 4.900(X) 
4 <X< 10.67 


i 



10 
FACE DIAMETER, meters 

4.2.3.4. Drift/tunnel boring machine 



100 



370 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.3. MINING EQUIPMENT 

4.2.3.5. CONVEYOR HAULAGE EQUIPMENT 

The capital cost curve for conveyor haulage equipment includes the purchase of 
underground equipment and items not previously included in other sections. The 
cost is based on the purchased equipment curve with a production range (X), in 
metric tons material per day. The curve is valid between 1,000 and 50,000 mtpd , 
operating two shifts per day. These costs are based on equipment being delivered 
and made fully operable at an appropriate site in the Denver, CO, area. Provision 
is made for standby equipment, spare parts, administrative, and maintenance units. 

The costs on the curve are directly related to the daily metric tons transported by 
conveyor haulage. The costs are based on a 300-m (980-ft) one-way haul distance in 
level to near-level workings. Any costs associated with a different transportation 
method should be costed using the appropriate equipment curve. The costs on this 
curve are to be added to costs from the drill-and-blast equipment curve plus any 
costs associated with equipment curves for other haulage methods. 

The equipment contained in this curve includes purchase and installation of 
conveyors and support equipment. Hoisting, ventilation, compressed air, pumping 
equipment, and power transmission lines are included in other capital cost sections, 

BASE CURVE 

(E) Purchased Equipment Cost (Y E ) = 5 ,471 .851(X) - 456 

The equipment operating cost consists of 92% for conveyor equipment, 3% for 
loading equipment, and 5% for miscellaneous equipment. 

ADJUSTMENT FACTOR 

Distance Factor For haul distances other than 300 m (980 ft) one way, multiply the 
costs obtained from the curves by the following factor: 

Distance factor (F D ) = 0.005(D) 0,944 
where D = one way haul, in meters. 



371 



Underground Mining— Capital Costs 



1,000 



« 

JD 

"5 
"O 



n 

c 
o 
n 

O 

s: 



10 

o 
o 



100 





































/ 


















/ 






























/ 






















. x 0.456 
Y E = 5. 471. 851 (X) 

1.000 <X< 50.000 








I ill 



1,000 



10.000 
MATERIAL, metric tons per day 

4.2.3.5. Conveyor haulage equipment 



100.000 



37 2 

4.2. UNDERGROUND MINING—CAPITAL COSTS 

4.2.3. MINING EQUIPMENT 

4.2.3.6. CONVEYOR EXTENSIONS 

The capital cost curve for conveyor extension equipment includes the purchase of 
underground equipment and items not previously included in other sections. The cost 
is based on the purchased equipment curve with a transportation rate (X), in metric 
tons material per day. The curve is valid between 1,000 to 50,000 mtpd, operating 
two shifts per day. These costs are based on equipment being delivered and made 
fully operable at an appropriate site in the Denver, CO, area. Provision is made 
for standby equipment, spare parts, administrative, and maintenance units. 

The costs on the curve are directly related to the daily metric tons transported by 
conveyor haulage. This curve is primarily to be used for costs associated with 
adding on to an existing conveyor system. The costs are based on a 300-m (980-ft) 
one-way haul distance in level to near-level workings. Any costs associated with a 
different transportation method should be costed using the appropriate equipment 
curve. The costs on this curve are to be included with the costs from the drill- 
and-blast equipment curve plus any costs associated with equipment curves for other 
haulage methods in order to come up with a total equipment cost. 

The equipment contained in this curve includes purchase and installation of 
conveyors and support equipment. Hoisting, ventilation, compressed air, pumping 
equipment, and power transmission lines are included in other capital cost sections. 

The operating costs curve for conveyor haulage (5.2.3.5.) is appropriate for both 
conveyor and conveyor extension operating costs. 

BASE CURVE 

(E) Purchased Equipment Cost (Y E ) = 4,933.633(X) 0,455 

The equipment operating cost consists of 92% for conveyor equipment, 3% for 
loading equipment, and 5% for miscellaneous equipment. 

ADJUSTMENT FACTOR 

Distance Factors For haul distances other than 300 m (980 ft) one way, multiply the 
costs obtained from the curves by the following factor: 

Distance factor (F D ) = 0.005(D) * 944 
where D = one-way haul, in meters. 



373 



Underground Mining— Capital Costs 



1.000 



tn 
o 

"O 



CO 

C 

a 
in 

O 

JZ 



to 

O 
O 



100 



































y 


/ 




































/ 


































, 0.4-55 
Y E = 4,933.633(X) 

1,000 <X< 50,000 

i _, , f— _, — i 



1,000 



10,000 
MATERIAL, metric tons per day 

4.2.3.6. Conveyor extensions 



100,000 



374 

4.2. UNDERGROUND MINING - CAPITAL COSTS 

4.2.3. MINING EQUIPMENT 

4.2.3.7. LOAD-HAUL-DUMP HAULAGE EQUIPMENT 

The capital cost curve for LHD haulage Includes the purchase of underground equip- 
ment and items not previously included in other sections. The cost is based on the 
purchased equipment curve with a production range (X), in metric tons material per 
day. The curve is valid between 100 and 10,000 mtpd, operating two shifts per 
day. These costs are based on equipment being delivered and made fully operable at 
an appropriate site in the Denver, CO, area. Provision is made for standby equip- 
ment, spare parts, administrative, and maintenance units. 

The costs on the curve are directly related to the daily metric tons transported by 
LHD haulage. The costs are based on a 500 m (1,600 ft) one-way haul distance in 
level to near-level workings. Any costs associated with a different transportation 
method should be costed using the appropriate equipment curve. The costs on this 
curve are to be added to costs from the drill-and-blast equipment curve plus any 
costs associated with equipment curves for other haulage methods. 

The equipment contained in this curve includes LHD's and support vehicles. 
Hoisting, ventilation, compressed air, pumping equipment, and power transmission 
lines are included in other capital cost sections. 

BASE CURVE 

(E) Purchased Equipment Cost (Y E 100-2 000 MTPD> = 123,893.086(X) ' 231 

(Y E 2,000-10,000 MTPD> = 370.020(X) 1 ' 000 
The equipment operating cost consists of 95% for loading equipment and 5% for 
miscellaneous equipment. 

ADJUSTMENT FACTORS 

Grade Factor The curve values are based on grades up 2%. For grades greater than 
2%, multiply the costs obtained from the curves by the following factor: 

Grade factor (F G ) = 0. 929(1. 037) G 

where G = grade in percent of incline or decline. 

Distance Factor For haul distances other than 500 m (1,600 ft) one way, multiply 
the costs obtained from the curves by the following factor: 

Distance factor (F D ) = 0.098(D) * 382 
where: D = one way haul, in meters. 



375 



Underground Mining— Capital Costs 



10,000 



to 
o 
o 



n 

c 1.000 
o 

01 

o 

JO 



o 
o 



100 



I I 










, N 0.231 
- Y E = 123,893.086(X) 

100 <X< 2,000 


































/ 
































/ 


















r 












































, .1.000 












Y E= 
2.0 


370.020(X) 

00 <X< 10,000 


; 



100 



1,000 
MATERIAL, metric tons per day 

4.2.3.7. LH.D. haulage equipment 



10,000 



376 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.3. MINING EQUIPMENT 

4.2.3.8. RAIL HAULAGE EQUIPMENT 

The capital cost curve for rail haulage includes the purchase of underground equip- 
ment and items not previously included in other sections. The cost is based on the 
purchased equipment curve with a tonnage transported (X), in metric tons per day. 
The curve is valid between 100 and 50,000 mtpd, operating two shifts per day. 
These costs are based on equipment being delivered and made fully operable at an 
appropriate site in the Denver, CO, area. Provision is made for standby equipment, 
spare parts, administrative, and maintenance units. 

The costs on the curve are directly related to the daily metric tons transported by 
rail haulage. The costs are based on a 915-m (3,000-ft) one-way haul distance in 
level to near-level workings. Any costs associated with a different transportation 
method should be costed using the appropriate equipment curve. The costs on this 
curve are to be included with the costs from the drill -and-blast equipment curve 
plus any costs associated with equipment curves for other haulage methods in order 
to come up with a total equipment cost. 

The equipment contained in this curve includes locomotives, ore cars, flat cars, 
loaders, and support vehicles. Hoisting, ventilation, compressed air, pumping 
equipment, and power transmission lines are included in other capital cost sections. 

BASE CURVE 

(E) Purchased Equipment Cost (Y E ) = 19,697.330(X) 0#539 

The equipment operating cost consists of 90% for haulage equipment, 5% for 
loading equipment, and 5% for miscellaneous equipment. 

ADJUSTMENT FACTORS 

Locomotive Factor The curve is based on using battery locomotives. For other types 
of locomotives, multiply the costs obtained from the curve by the following 
factors: 

Diesel locomotives factor (Fl DIESEL^ = 0*533 

Trolley locomotives factor (F L TROLLEY ) = 1*273 

Distance Factor For haul distances other than 915 m (3,000 ft) one way, multiply 
the costs obtained from the curve by the following factor: 

Distance Factor (F D ) = 0.0013(D) * 968 
where: D = one way haul, in meters. 



377 



Underground Mining— Capital Costs 



10,000 



0) 

V. 

o 
o 



10 

c 1,000 
o 

01 

o 



O 
O 



100 











































































































/ 






















7* 






















y 


/ 






















/ 


A 


' 




























































































Y E 


= 1 
1( 


9 

DO 

> — i 


,697.3 

<x< 




30(X) 

50,0 


00 


IJ3 

I 



100 1,000 10,000 100,000 

MATERIAL, metric tons transported per day 

4.2.3.8. Rail haulage equipment 



378 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.3. MINING EQUIPMENT 

4.2.3.9. TRUCK HAULAGE EQUIPMENT 

The capital cost curve for truck haulage includes the purchase of underground equip- 
ment and items not previously included in other sections. The cost is based on the 
purchased equipment curve with a tonnage transported (X), in metric tons per day. 
The curve is valid between 1,000 and 50,000 mtpd, operating two shifts per day. 
These 

costs are based on equipment being delivered and made fully operable at an appropri- 
ate site in the Denver, CO, area. Provision is made for standby equipment, admini- 
strative, and maintenance units. 

The costs on the curve are directly related to the daily metric tons transported by 
truck haulage. The costs are based on a 680-m (2,250-ft) one-way haul distance in 
level to near-level workings. Any costs associated with a different transportation 
method should be costed using the appropriate equipment curve. The costs on this 
curve are to be added to costs from the drill-and-blast equipment curve plus any 
costs associated with equipment curves for other haulage methods. 

The equipment contained in this curve includes trucks, loaders, and support 
vehicles. Hoisting, ventilation, compressed air, pumping equipment and power trans- 
mission lines are included in other capital cost sections. 

BASE CURVE 

(E) Purchased Equipment Cost (Y E ) = 2,759.215(X) * 838 

The equipment operating cost consists of 57% for haulage equipment, 38% for 
loading equipment, and 5% for miscellaneous equipment. 

ADJUSTMENT FACTORS 

Distance Factor For haul distances other than 680 m (2,250 ft) one way, multiply 
the cost obtained from the curve by the following factor: 

Distance factor (F D ) = 0.040(D) ' 492 
where D = one-way haul, in meters. 

Incline Factor For haul grades greater than 2%, multiply the cost obtained from the 
curve by the following factor: 

Incline factor (Fj) = 1.0 + 0.016(G) 
where: G = grade, in degrees. 



379 



Underground Mining— Capital Costs 



100,000 



£ 

| 10,000 

*o 



W 

"D 
C 
O 
V) 
3 
O 
-C 



o 
o 



1,000 



100 







































































/' 






























































































y 
































































Y E =2 


, 0.838 
,759.21 5(X) 












1,0( 


30 <X< 50,000 


i 



1,000 10,000 100,000 

MATERIAL, metric tons transported per day 

4.2.3.9. Truck haulage equipment 



380 

4.2. UNDERGROUND MINING—CAPITAL COSTS 

4. 2. A. TRANSPORTATION 

4.2.4.4. RAILROAD CONSTRUCTION 

The cost in this section covers the capital expense for laying standard -gage track- 
age for main lines and spurs. The cost reflects railway installation by a crew that 
works on a one-shift-per-day schedule; furthermore, the cost is based on trackage 

that is fully ballasted. 

BASE CURVE 

The total capital cost is based on a single cost curve having a railroad length (X), 
in total kilometers. The curve is valid for a length range of 1 to 60 km, operating 
one shift per day. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 26% 

Construction supply cost 69% 

Purchased equipment cost 5% 

The total railroad construction capital cost is (Y c ) = lSS^COOOCX) 1 * 000 and 
is distributed as follows: 

(L) Construction Labor Cost (Y L ) = 49, O.^.SOOCX) 1 * 000 

(S) Construction Supply Cost (Y s ) = UO.OSS^OOCX) 1 * 000 

(E) Purchased Equipment Cost (Y E ) = 9,426.500(X) 1 * 000 

ADJUSTMENT FACTORS 

Ballast Factor For the installation of standard-gauge trackage without ballast, 
multiply the cost obtained from the base curve by the following factor: 

Ballast factor (F B ) = 0.85 

Roadbed Construction For construction expenses resulting from roadbed clearing, 
drill and blast, and excavation, refer to Access Roads sections (4.2.7.1.1.- 
4.2.7.1.3.) and apply a roadway width of 6.1 m to the applicable cost equations; 
the additional railway expenses so derived should then be added to this sec- 
tion's capital cost. 

Equipment Factor When it is necessary to purchase equipment or to have a subcon- 
tractor perform the work, multiply the equipment operation value by the follow- 
ing factor in order to obtain the total value of equipment expense for ownership 

and operation: 

Equipment operation factor (Yj?) =1.7 



381 

Subcontractor Factor If a subcontractor is used, to compensate for the subcontrac- 
tor's markup, multiply the costs obtained from the curves by the following 
factors: 

Labor factor (Y L ) -1.5 

Supply factor (Ys) =1.2 

Equipment operation factor (Yg) ■ 1«2 



382 



Underground Mining— Capital Costs 



100,000 



n 

o 

o 10,000 



CO 

■a 
c 
o 
n 

3 
O 

-C 



CO 
O 
O 



1,000 



100 

































































































> 




















X 






































/ 




















































/' 






































/ 






































1.000 
Y c = 188,530.000(X) 

1 < X < 60 












: 



10 
LENGTH, total kilometers 

4.2.4.4-. Railroad construction 



100 



383 
4.2. UNDERGROUND MINING—CAPITAL COSTS 
4.2.4. TRANSPORTATION 
4.2.4.5. LONG-DISTANCE SURFACE CONVEYOR 



The cost curve shown is for the acquisition and erection of a long-distance surface 
conveyor. The conveyor is a single-flight belt conveyor made with high-strength 
steel belting. The conveyor is designed for a 10° slope and 1-km distance. 
Usually, the material is crushed or screened at the mine site before being conveyed. 
Screen and crusher capital costs are not included in this cost but are covered in 
separate sections. 

BASE CURVE 

The total cost is based on a single cost curve having a production rate (X), in 
metric tons material per day. The curve is valid for production rates of 15,000 to 
150,000 mtpd, operating three shifts per day. The curve includes all costs 
associated with acquisition, installation of the belt, idlers, motors, channel, and 
frame, and site preparation. 

The long distance surface conveyor capital cost derived from the curve is a combina- 
tion of the following costs: 

Construction labor cost 31% 

Construction supply cost 5% 

Purchased equipment cost 64% 

A typical breakdown of a long distance surface conveyor major cost components is: 

Conveyor belt 36% 

Idler assembly units 44% 

Motors, drive trains, belt cleaners, 

and other mechanical items 20% 

The total long distance surface conveyor capital cost is (Yq) = 81 , 292 .281(X) 0* 3 ^ 9 
and is distributed as follows: 

(L) Construction Labor Cost (Y L ) = 25 ,200.607(X) °- 309 

(S) Construction Supply Cost (Y s ) = 4,064. 614(X) - 309 

(E) Purchased Equipment Cost (Y E ) = 52 ,027.060(X) - 309 

ADJUSTMENT FACTORS 

Belt Life The conveyor belt, 36% of equipment cost, has an average wear life of 8 
to 10 yr of use, based on three shifts per day, 350 operating days per year, and 
depending on the abrasiveness of the material. The total replacement of the 
belt is standard procedure after excessive wear. 



384 

Conveyor Length and Slope Factor The conveyor is 1-k.m long and has a 10° slope. 

For other lengths and slopes, multiply the cost obtained from the base curve by 
the following factor: 

Conveyor length and slope factor (F L ) = [0. 917+0. 00940 (S) ][ L/l] 

where: L = length, in kilometers, 

and S = slope in degrees, between 0° and 15°. 

The cost for a decline conveyor is equal to that for a horizontal conveyor 
(0° slope). 

Stacker-Tripper Factor If the material is conveyed to a processing plant or 

other end point such as a port facility, the capital cost for unloading from 
the conveyor is included in those sections. If the material is waste rock, 
then the cost for a tripper or stacker should be added to the estimated capital 
cost. Costs for these items vary greatly but can range from $600,000 for a 
stacker or tripper that handles 15,000 mtpd waste material to $5,000,000 for a 
stacker or tripper that handles 150,000 mtpd of waste rock. 



385 



Underground Mining— Capital Costs 



10,000 



_ 

o 
~o 

T3 



w 
-o 
c 
o 
to 

o 



CO 

o 
o 



1,000 





























































































, x 0.309 
Y c = 81, 292.281 (X) 

15,000 < X < 150,000 




I III 



10,000 100,000 

MATERIAL, metric tons per day 

4.2.4.5. Long distance surface conveyor 



1,000,000 



386 

4.2. UNDERGROUND MINING— CAPITAL COSTS 
4.2.5. MINE PLANT GENERAL OPERATIONS 
4.2.5.1. COMMUNICATIONS SYSTEM 

Costs in this section cover the purchase and installation of complete surface and 
underground communications systems. Included are extension lines from existing 
system networks; surface facilities, phone and paging systems; and underground lines 
and audible phone paging stations. Because of the current structure of the communi- 
cations industry it is likely that all surface lines and equipment will be installed 
by the company from which it is purchased. For the underground system, it is 
assumed that the supplier will deliver the equipment to the mine site but that 
operating labor will complete the installation. Costs for the phone systems are 
based on ore production level only. It is assumed that waste tonnage is minimal, 
approximately 10% of the total tonnage. If significantly larger the evaluator 
should use the larger, total tonnage figure for cost determination. 

BASE CURVE 

The total capital cost is based on a single curve having a production rate (X), in 
metric tons of ore per day. The curve is valid for a operations between 100 and 
50,000 mtpd. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 13% 

Construction supply cost 20% 

Purchased equipment cost 67% 

The total communication system capital cost is (Y c ) = 1,034. 914(X) *^ 59 and is 
distributed as follows: 

(L) Construction Labor Cost (Y L ) = 134.539(X) ' 459 

(S) Construction Supply Cost (Yg) = 206.983(X) * 459 

(E) Purchased Equipment Cost 1 (Y E ) = 693.392(X) * 459 

-'-Freight has not been applied as all equipment and supplies will be placed at 
the site by the contractor or jobber supplying the materials. 



387 



Underground Mining— Capital Costs 



1,000 



m 

\_ 
o 

o 
■o 



a 

TJ 

c 
o 
a 

O 



o 
o 



100 



10 



























































































































































































































































































s^ 
















































































































, N 0.459 
Y c =1, 034.91 4(X) 

100 <X< 50,000 


















I 



100 



1,000 10,000 

ORE, metric tons per day 

4.2.5.1. Communications system 



100,000 



388 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.5. MINE PLANT GENERAL OPERATIONS 
4.2.5.2. COMPRESSED AIR FACILITIES 

Capital costs for compressed air system, as presented here, are based on capacity of 
the facilities. This section will deal with compressors having an atmospheric pres- 
sure intake and a discharge pressure of 689 to 861 kPa (100 to 125 psi). Higher 
pressure compressor systems (1724 to 2413 kPa) are accounted for in the appropriate 
mining methods sections (vertical crater retreat and blasthole). A compressed air 
system includes primary air compressor(s) as well as backup or auxiliary compres- 
sors), ancillary compressor equipment, piping to the mine portal or collar, and a 
compressor building. An air compressor system may include reciprocating, rotary, 
and/or centrifugal compressors. Reciprocating compressors are commonly used in all 
sizes of underground mines. Rotary compressors have the greatest application for 
supplying 689 kPa (100 psi) air to small- and medium-sized underground mines. 
Centrifugal compressors are commonly used in medium- and large-sized underground 
mines when large volumes of compressed air are required with minor demand fluctua- 
tions. The volume of compressed air required for underground mines (measured in 
cubic meters per minute) is dependent on the type of mining method used. If com- 
pressed air requirements for a mine are not known they can be estimated from the 
following information: 

Air requirement 
Mining Method per metric ton per shift, (m-Vmin) 

Shrinkage, cut and fill, 
mechanized cut and fill, 
square-set stoping methods: 

Range 0.027-0.265 

Average 0.200 

Blasthole mining: 

Range 0.073-0.094 

Average 0.083 

Longhole drilling, sublevel, 
block caving methods: 

Range 0.050-0.093 

Average 0.070 

Open stoping: 

Range 0.170-0.260 

Average 0.200 

BASE CURVE 

Total cost is based on a single cost curve having a total compressor capacity (X) , 
in cubic meters installed capacity per minute, which includes line losses, leaks, 
and drilling diversity for a plant installed at 1,600 m (5,249 ft) elevation. The 
curve is valid for capacities between 20 and 2,000 m-Vmin. 



389 



The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 7% 

Construction supply cost 5% 

Purchased equipment cost 88% 

The total compressed air facilities capital cost is (Y c ) = 9,884.496(X) 0,695 and 
is distributed as follows: 

(L) Construction Labor Cost (Y L ) = 691. 915(X)°* 695 

(S) Construction Supply Cost (Y s ) = 494.225(X) 0,695 

(E) Purchased Equipment Cost (Y E ) = 8,698.356(X) * 695 

ADJUSTMENT FACTOR 

Elevation Factor If elevation of the compressor plant varies from 1,600 m (5,249 
ft) a correction for altitude must be applied to the air requirements. To ad- 
just air volume requirements, multiply the cost obtained from the curve by the 
following factor: 



Elevation, 


Factor 


Elevation, 




ft 


mt 


ft 


mt 


Factor 








0.85 


6,000 


1,831 


1.03 


1,000 


305 


0.87 


7,000 


2,136 


1.07 


2,000 


610 


0.90 


8,000 


2,441 


1.11 


3,000 


915 


0.93 


9,000 


2,746 


1.15 


4,000 


1,220 


0.96 


10,000 


3,050 


1.19 


5,000 


1,526 


0.99 


12,500 


3,813 


1.31 


5,249 


1,600 


1.00 









The factors can be generated from the following equation: 



Elevation factor (F E ) = 0.823+0. 0001(G) 
where G = elevation, in meters. 



390 



Underground Mining— Capital Costs 



10,000 



L. 

o 

=5 1,000 



CO 

C 

o 
o 



in 
o 

CJ 



100 



10 































































































































































/ 




















































/ 










































































y 
































































































0.695 
Y c = 9,884.496(X) 

20 <X< 2,000 


















ill I ill 



10 100 1,000 10,000 

INSTALLED CAPACITY, cubic meters per minute 

4.2.5.2. Compressed air facilities 



391 
4.2. UNDERGROUND MINING— CAPITAL COSTS 
4.2.5. MINE PLANT GENERAL OPERATIONS 
4.2.5.3. ELECTRICAL SYSTEM 

Costs derived from this section include the purchase and installation of all 
electrical devices as well as lines and poles to service all surface and underground 
facilities. Power is carried to the servicing transformer at each building or load 
location. This includes all distribution lines on the surface, the major distribu- 
tion lines down the shaft, and subfeeders to the load locations throughout the mine. 

Two methods of cost determination are presented: 

1) Determine standardized power requirements from the equations given below 
and using this value, determine the electrical system capital cost by referring 
to the base curve or the related equation. 

Tonnage /electrical consumption equations: 

Total kW = 46.6KT) * 640 

where: T = ore and waste mined, in metric tons per day. 

2) Determine the electrical consumption rate for the mine under study through 
review of the motor and lighting requirements, and use this total value rather than 
standardized power requirements for cost determination using the base curve. 

BASE CURVE 

The total cost is based on a single curve having power requirements (X), in total 
kilowatts. The curve is valid for operations between 1,000 and 40,000 kW, operating 
two shifts per day. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 67% 

Construction supply cost 12% 

Purchased equipment cost 21% 

The total electrical system capital cost is (Y c ) = 934.503(X)°* 720 and is 
distributed as follows: 

(L) Construction Labor Cost (Y L ) = 626.117(X)°* 720 

(S) Construction Supply Cost (Y s ) = 112.140(X) * 720 

(E) Purchased Equipment Cost (Y E ) = 196.246(X) * 720 

ADJUSTMENT FACTORS 

Substation Factor In many cases, power companies are able to supply power directly 
and a substation is not required; or, if it is required, the power company is 
willing to absorb the cost of its installation. This is especially true for 



392 

the smaller tonnage facilities whose power usage does not exceed 10,000 kVA. 
To adjust the electrical system capital costs for these instances, multiply the 
costs obtained from the curves by the following factors: 

Labor factor (F L ) = 0.93 

Supply factor (F s ) = 0.98 

Purchased equipment factor (Fg) = 0.53 

Adit Entry Factor In the event an adit entry is the primary means of access for the 
mine under investigation it is necessary to reduce the total kilowatt demand by 
the power requirements for hoisting and drainage. As both of these activities 
will not be required in that instance, reduce the total power appropriately 
before determining the capital cost using the cost equation contained in this 
section. If the evaluator has estimated or knows the power requirements for 
these activities, the adjustment can be made directly. If the power require- 
ments are being estimated using the metric tons mined to kilowatt demand equa- 
tion on the previous page, multiply the costs obtained from the curves by the 
following factor: 

Adit entry factor (F A ) = 0.47 



393 



Underground Mining— Capital Costs 



10,000 



CO 

o 
o 

■D 



V) 

c 1,000 
o 

10 

o 



CO 

o 

o 



100 



























































































































































































, ,0.720 " 
Y c = 934.503(X) 

1,000 <X< 40,000 
















! Ill 



1,000 10,000 

POWER REQUIREMENT, total kilowatts 

4.2.5.3. Electrical system 



100,000 



394 

4.2. UNDERGROUND MINING— CAPITAL COSTS 
4.2.5. MINE PLANT GENERAL OPERATIONS 
4.2.5.4. FUELING SYSTEM 

The capital cost of fueling systems is based on estimated daily mine production, and 
accounts for all supplies and equipment needed for fuel storage and distribution, as 
well as installation labor. Costs are based on shaft entry mines serviced primarily 
by diesel equipment. Factors are provided for nondiesel operations, and mines 
accessed by adits. Mines generally have large surface fuel storage facilities that 
are connected by feeder lines to small underground distribution tanks. Small opera- 
tions may rely on a single small fuel truck or rail fuel car that can be transported 
between levels. 

The total capital cost is based on a single curve having a production rate (X), in 
metric tons ore and waste mined per day. The curve is valid for operations between 
20 and 50,000 mtpd, operating two shifts per day. 

BASE CURVE 

Total cost accounts for purchase and installation of all surface and under- ground 
fuel storage tanks, tank fittings, foundations, individual tank piping, connecting 
pipes, pipe hangers, pumps, valves, and filters. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 21% 

Construction supply cost 77% 

Purchased equipment cost 2% 

The total small fueling system, 20 to 375 mtpd, capital cost is 
(Y c SMALL) = 11,547. 394(X)°* 00f) and is distributed as follows: 

(L) Construction Labor Cost (Y L SMALL) = 2,424.953(X)°* 00 ° 

(S) Construction Supply Cost (Y s SMALL ) = 8,891.493(X) * 000 

(E) Purchased Equipment Cost (Y E SMALL ) = 230.948(X) * 000 

The total large fueling system, 375 to 50,000 mtpd, capital cost is 
(Y c LARGE) = 10, 362. 394+3. 161(X) is distributed as follows: 

(L) Construction Labor Cost (Y L LARGE) = 2 ,176. 103+0. 664(X) 

(S) Construction Supply Cost (Y s large) = 7, 979.043+2 .434(X) 

(E) Purchased Equipment Cost (Y E LARGE) = 207 .248+0. 063(X) 

ADJUSTMENT FACTORS 

Nondiesel Mine Factor In mines where the majority of the equipment is powered by 

sources other than diesel fuel, only a small surface storage facility is needed. 



395 

To account for this reduction in equipment, multiply the cost obtained from the 
curve by the following factor: 

Nondiesel mine factor (%) = 0*148 

Adit Entry Factor Mines that use an adit as their main access often depend on 
fuel trucks for diesel distribution rather than an underground fuel tank and 
pumping station. To account for the elimination of the underground fueling 
station, and the addition of a fuel truck, multiply the cost obtained from the 
curve by the following factor: 

Adit entry factor (F A ) = 0.854 

CAUTION Some States prohibit the storage of diesel fuel underground. This informa- 
tion can be obtained from the agency in charge of mining regulation for the 
State in question. If the deposit is in a State that prohibits underground fuel 
storage, the adit entry factor must be applied. This will eliminate the under- 
ground fueling station and account for an alternative distribution system. 



395 



1,000 



n 
o 
o 



CD 
TJ 

C 
D 
OT 

•D 
O 

.c 



m 
o 
o 



100 



10 















Urn 


ierground f 


vlinin 


g 


-Capital 


Costs 


1 I 1 1 1 111 


, . 0.000 
Y c = 11,547.394(X) 

20 <X< 375 


Y c = 10,362.394+3.1 61 (X) 
375 <X< 50,000 






































































/ 


































/ 


































/ 


































/ 






























/ 




/ 


* 






























/ 





























10 



100 1,000 10,000 

ORE AND WASTE, metric tons per day 

4.2.5.4. Fueling system 



100,000 



397 
4.2. UNDERGROUND MINING— CAPITAL COSTS 
4.2.5. MINE PLANT GENERAL OPERATIONS 
4.2.5.6. OFFICES AND LABORATORIES 

The cost curves for offices and laboratories include construction of general 
offices, engineering and safety offices, and laboratories, including furnishings as 
well as all necessary assay equipment. Building costs are based on masonry 
construction. In this section, office and laboratory capital costs are presented 
separately. It has been found that the type of equipment required as well as 
typical construction of these two facilities differ considerably; therefore, 
separate curves allow for greater accuracy in cost determination for these 
categories. To determine the total cost for this section it is necessary to 
determine each category cost individually and then combine the resultant two 
values. 

BASE CURVES 

The costs obtained from these curves are based on the assumption that these facili- 
ties will be used only for mining operations. If the mine and mineral processing 
plant are to share the same facilities, the user must determine, using a knowledge 
of the requirements, what can be jointly used and apportion the resulting costs to 
the mine and plant. 

OFFICES 

The total capital cost is based on a single cost curve having an area (X), in square 
meters of office space or on a single cost curve having a production rate (T), in 
metric tons ore and waste mined per day (a typical waste tonnage of 10% is assumed; 
if this percentage is substantially exceeded, the total tonnage should be used for 
T). The curve is valid for areas of 60 to 4,000 m 2 , or 150 to 22,000 mtpd, 
operating two mining shifts per day. The capital cost curve for offices includes 
construction of administrative, engineering, and safety office space, as well as 
office furnishings. 

If office space requirements are known the capital cost estimate may be made 
directly by consulting the curve; if space requirements are not known they can be 
estimated from the following equation: 

Square meters of office space = 4 .332(T) 0, 588 

where: T = ore and waste mined, in metric tons per day. 

The final cost office cost derived from the curve is a combination of the following 
costs: 

Construction labor cost 39% 

Construction supply cost 50% 

Purchased equipment cost 11% 



398 

The total office capital cost is (Y c SQUARE METERS^ = 812.061(X) * 965 and is 
distributed as follows: 

(L) Construction Labor Cost (Y L OFFICES-SQ M> = 316.704(X) * 965 

(S) Construction Supply Cost (Y s OFFICES-SQ M^ = 406. 031 (X) * 965 

(E) Purchased Equipment Cost (Y E OFFICES-SQ M> = 89.327(X) ' 965 

The total office capital cost is (Y c MTPD> = 2,961.959(T) ' 595 and is distri- 
buted as follows: 

(L) Construction Labor Cost (Y L OFFICES-MTPD^ = 1,155.164(T) 0,595 

(S) Construction Supply Cost (Y s OFFICES-MTPD^ = 1>480.980(T) 0,595 

(E) Purchased Equipment Cost (Y E OFFICES-MTPD^ = 325.815(T) ' 595 

LABORATORIES 

The total capital cost is based on a single cost curve having an area (X), in square 
meters of office space or on a single cost curve having a production rate (T), in 
metric tons ore and waste mined per day (a typical waste tonnage of 10% is assumed; 
if this percentage is substantially exceeded, the total tonnage should be used for 
T). The curve is valid for areas of 28 to 700 m 2 , or 850 to 18,000 mtpd, 
operating two mining shifts per day. The capital cost curve for assay laboratories 
includes construction of sample preparation, analytical, and metallurgical 
laboratory space as well as crushing, assaying, and metallurgical laboratory 
equipment. The capital cost is based on steel building construction and is for a 
laboratory used only by the mine. If laboratory space requirements are not known 
they can be estimated from the following equation: 

Square meters of laboratory space = 0.687(1)0*628 
where: T = ore and waste mined, in metric tons per day. 

Use the larger of 28 m 2 or the computed value for actual cost determination 
through the base curve below if laboratory facilities are to be built on-site. 

The final assay laboratory cost derived from the curve is a combination of the 
following costs: 

Construction labor cost 20% 

Construction supply cost 22% 

Purchased equipment cost 58% 

The total laboratory capital cost is (Y c SQUARE METERS^ = 2,645.438(X) * 901 and 
is distributed as follows: 

(L) Construction Labor Cost (Y L LA BS-SQ m) = 529.088(X) * 901 

(S) Construction Supply Cost (Y s LABS-SQ M^ = 581.996(X) ' 901 

(E) Purchased Equipment Cost (Y E labs-SQ M ) = 1534 .354(X)°* 901 



399 

The total laboratory capital cost is (Y c MTPD^ = 1,874. 219(T)°* 565 and is dis- 
tributed as follows: 

(L) Construction Labor Cost (Y L LABS-MTPD) = 374.844(T)°* 565 

(S) Construction Supply Cost (Y s lABS-MTPd) = 412.328(T) * 565 

(E) Purchased Equipment Cost (Y E LABS-MTPd) = 1>087. 047(T) 0,565 

ADJUSTMENT FACTORS 

Joint Facility Factor When laboratory facilities are jointly used, which is often 
the case, multiply the laboratory area requirements for the mine by 1.5, deter- 
mine the appropriate capital cost, and then split the cost 50% for the mine and 
mill capital cost categories. Combined mine and mill laboratory area should not 
exceed 700 m^. If the number of samples assayed by the mine and mill are 
known, laboratory cost should be divided on this basis. 

Shift Factor It is important to note that if a smaller laboratory is built with the 
intent of operating three shifts per day rather than two, as assumed for the 
base case, capital costs will be substantially reduced. Likewise, space 
requirements for a laboratory operated one shift per day will be considerably 
greater. To adjust from the two shift basis it is necessary to multiply the 
shift ratio (base /actual) times the mine capacity before determining the space 
requirements through the tonnage /square meter relationship and then use the 
adjusted value for actual cost determination. For offices this is not generally 
considered to be a suitable adjustment as these facilities are invariably used 
only one shift per day. 

Weather Factor For office facilities and laboratory facilities located in climates 
that vary from the Denver, CO, area, multiply the costs obtained from the curves 
by the following factors: 



Mild areas: 

Weather factor 

Weather factor 

Severe areas: 

Weather factor 

Weather factor 



( F L office-mild) _ 0- 95 
(f l laboratory-mild) = °' 98 

( f l office-severe) " 1*07 
^ f l laboratory-severe) = !«04 



403 



Underground Mining— Capital Costs 



10,000 



n 

a 

o 1,000 
•o 



in 
TJ 

C 
O 

m 

O 

jC 



CO 

o 
o 



100 



10 



1 111! 


















Laboratories 

0.901 
Y c = 2,645.438(X) 

20 <X< 700 












































/ 






























































/ 




/ 






















/ 


> 


/ 


' 


















f 


/ 


/ 




















f 




/& 


V 




















\> 


y / 


^a 












































































/ 








































Y 


Offices 


















'—i 


c 


60 <: 


<< 4, 


00 


o 

1 1 — ' 



10 



100 1,000 

OFFICE SPACE, square meters 

4.2.5.6.a Offices and laboratories 



10,000 



401 



Underground Mining— Capital Costs 



10,000 



D 



o 1,000 



(0 

-a 

c 
o 
m 

o 

-C 



in 
O 
O 



100 



10 



I I I I I I 


















Offices 

, N 0.595 
- Y C =2,961.959(X) 

150 <X< 22,000 


























































' 


/ 






































y / 


















































A 


^ 


£ 


S 


















f\ 






















spy 


















S 


s 






s 










































































Laboratories 

, ,0.565 
Y c = 1,874.219(X) 

850 <X< 18,000 






























II! I III 



100 1,000 10,000 

ORE AND WASTE, metric tons per day 

4.2.5. 6. b Offices and laboratories 



100,000 



402 

4.2. UNDERGROUND MINING—CAPITAL COSTS 
4.2.5. MINE PLANT GENERAL OPERATIONS 
4.2.5.7. PORTABLE POWER GENERATION 

This section is to be used in conjunction with section 5.2.4.8. when electrical 
power is unavailable through a commercial power utility company or when it would be 
uneconomical to run power distribution facilities to the user. No adjustments are 
necessary for the mine or mineral processing plant electrical system [sections 
2.2.4.2., 4.2.5.3., and 6.1.8.4. (IC 9143)] because output power matches the power 
input to the mine/processing plant transformer-switchgear substations. 

The cost shown is for acquisition and installation of the primary power source, 
either a horizontal-diesel or a gas-turbine operated generator. The cost curve is 
based on a single 60-Hz, three-phase electrical generator providing all power at the 
rated kilowatt output. This section should be included in the mine and /or mineral 
processing plant capital cost totals. 

BASE CURVE 

The total capital cost is based on a single cost curve having an average continuous 
power output (X), in kilowatts. The curve is valid for generators between 18 to 
23,600 kW. The curve includes all costs associated with the acquisition, transpor- 
tation, and installation of single-unit generators. 

To convert from kilovolt amperes (kVA) demand to kilowatt (kW) power output, 
estimate power factor (PF). This may vary from 0.80 for electric motor circuits to 
1.00 for electric light circuits. The kilowatt power output is then determined by 

kVA x PF = kW. 

The costs derived from the curves are a combination of the following costs: 

Horizontal diesel Gas turbine 

(18 to (2,900 to 

2,900 kW) 23,600 kW) 

Installation labor cost 21% 21% 

Installation materials cost 20% 20% 

Purchased equipment cost 58% 59% 

Freight cost 1% 

Installation is assumed to be half labor and half materials. 

The total diesel powered portable power generation capital cost is 
(Y c DIESEL^ = 797.574(X) - 876 and is distributed as follows: 

(L) Installation Labor Cost (Y L DIESEL^ = 167.49KX) ' 876 

(S) Installation Materials Cost (Y s DIESEL^ = 159. 514(X) * 876 

(E) Purchased Equipment Cost (Y E DIESEL^ = 470. 568(X) * 876 



403 

The total turbine-powered portable power generation capital cost is 
(Y c TURBINE^ = 2, 251. 219 (X) 0,872 and is distributed as follows: 

(L) Installation Labor Cost (Y L turbine) = 472.756(X) * 872 

(S) Installation Materials Cost (Y s TURBINE) = 450.244(X) ' 872 

(E) Purchased Equipment Cost (Y E TURBINE^ = 1328. 219(X) * 872 

Power Output Determination For surface mine power output (kW), see Electrical 
System (section 2.2.4.2.). For underground mine and mineral processing plant power 
demand (kVA), see Electrical System [sections 4.2.5.3. and 6.1.8.4. (IC 9143)]. 

ADJUSTMENT FACTORS 

Power Rate If power is to be supplied by more than one unit, the total power output 
should be divided by the number of required units to obtain the power output per 
unit (X) needed for entering the curve. After the unit-cost has been calcu- 
lated, the cost must be multiplied by the total number of units used. 

Power Source If geography or economics necessitate multiple power sites to support 
mines and mineral processing plants, portable power cost should be estimated 
separately for each site using this section. 

Shift Adjustment Adjustment for the number of operating shifts is implicit in the 
choice of the average continuous power output. 

Economic Life The normal economic life for generators is 25,000 h for units rated 
at 1,100-kW output or greater and ranges from 11,000 to 17,500 h for units rated 
at less than 1,100-kW output. 

If the units are operated at standby rates, roughly 10% over capacity, the 
economic life would decrease by 50%. 

If high-sulfur fuels are used, the economic life would be decreased by 25%. 



4 34 



Underground Mining— Capital Costs 



100,000 



w 

L. 

a 
o 



n 

c 
o 
in 

o 

.r 



i- 

o 
o 



10.000 



1.000 



100 



10 



- 


-■ - 


■ 


































Diesel 

0.876 
' Y c - 797.574(X) 

18 <X< 2,900 


























































































&/ 


/ 
















































*, 


w 


































4 


?/ 
































































/ 


/ 




















































i 


























































































































- s\ 


/^ 


/ 


/ 


J 




























<3 


p 
























i 








A 


/ 


































/ 
























■ ' | 








,/ 


/ 












Turbine 
Y c = 2.251. 21 9(X)°' 872 " 






/ 


/ 


,' 




































2, 


9C 


)0 


< 


.x< 


23,6 


0( 


U 



10 



100 1.000 10,000 

POWER OUTPUT, kilowatts 



100,000 



4.2.5.7. Portable power generation 



405 
4.2. UNDERGROUND MINING— CAPITAL COSTS 
4.2.5. MINE PLANT GENERAL OPERATIONS 
4.2.5.8. REPAIR SHOPS AND WAREHOUSES 

In this section underground and surface facilities for repairing and ware- housing 
mine equipment and supplies are presented separately. Total capital cost is the 
summation of the two categories. If a mine's primary haulage system utilizes track- 
less equipment with an adit entry and /or has all repair shops and warehouses located 
on the surface and underground, the estimator should refer to section 2.2.4.7. 
(Surface Mine Repair Shops and Warehouses). 

BASE CURVES 

Repair shop and warehouse capital cost curves include all costs associated with 
acquisition, installation, and equipping of repair shops and warehouses for an 
underground mining operation. Repair shops are adequately equipped to maintain and 
repair virtually all mine equipment. 

The total capital cost is based on a single cost curve having an area (X), in square 
meters of floor space or on a single cost curve having a production rate (T), in 
metric tons ore and waste mined per day (a typical waste tonnage of 10% is assumed; 
if this percentage is substantially exceeded, the total tonnage should be used for 
T). The curve is valid for areas between 40 and 17,000 m 2 (300 to 3,400 m 2 for 
underground facilities and 40 to 17,000 m 2 for surface facilities), or_ 300 to 
63,000 mtpd, operating two mining shifts per day. 

SURFACE REPAIR SHOP AND WAREHOUSE FACILITIES 

The surface facilities capital costs are based on single-story steel building con- 
struction for Denver, CO, area weather requirements. If surface repair shop and 
warehouse space requirements are known the capital cost estimate may be made 
directly by consulting the curve (the curve is valid for areas between 40 and 17,000 
m^). If surface repair shop and warehouse space requirements are not known, they 
can be estimated from the following equation: 

Square meters = 0. 500(T) 0,952 

where: T - ore and waste mined, in metric tons per day. 

The final surface repair shop and warehouse cost derived from the curve is a combi- 
nation of the following costs: 

Small Large 

(40 to (9,000 to 

9,000 m 2 ) 17,000 m 2 ) 

Construction labor cost 34% 42% 

Construction supply cost.... 42% 51% 

Purchased equipment cost.... 24% 7% 

The total surface repair shop and warehouse capital cost is 

(Y C SURFACE-SQUARE METERS } = 1 > 089.174 (X) ' 856 and is distributed as follows: 



406 



(L) Construction Labor Cost 

(S) Construction Supply Cost 

(E) Purchased Equipment Cost 

(L) Construction Labor Cost 

(S) Construction Supply Cost 

(E) Purchased Equipment Cost 

(L) Construction Labor Cost 

(S) Construction Supply Cost 

(E) Purchased Equipment Cost 



(Y L SURF-SM-SQ M> = 272.294(X)0-S56 
(Y S SURF-SM-SQ M> = 337. 644(X)0-856 
(Y E SURF-SM-SQ M> " 479.237 (X)0' 8 56 

(Y L SURF-LG-SQ M> = 457.453(X)0-856 
(Y S SURF-LG-SQ M> = 555.479 (X)0'856 
(Y E SURF-LG-SQ M> = 76.242(X)0'856 

(Y L SURF-AVG-SQ M> " 370.319 (X) ' 8 ^ 
(Y S SURF-AVG-SQ M> = 446.561(X)0-856 
CY E SURF-AVG-SQ M> = 272.294(X)0'856 



The total surface repair shop and warehouse capital cost is 

( Y c SURFACE-MTPD) = 862.559(T) 0,792 and is distributed as follows: 

(L) Construction Labor Cost (Y L SURF-SM-MTPD^ = 362.275(T) 0,792 
(S) Construction Supply Cost (Ys SURF-SM-MTPD^ = 267.393(T) * 792 
(E) Purchased Equipment Cost (Y E SURF-SM-MTPD^ = 379.526(T) * 792 

(L) Construction Labor Cost (Y L SURF-LG-MTPD^ = 521.676(T) 0,792 
(S) Construction Supply Cost (Y s SURF-LG-MTPD^ = 439.905(T) 0,792 
(E) Purchased Equipment Cost (Y E SURF-LG-MTPD^ = 60.379 (T) 0,792 



(L) Construction Labor Cost 
(S) Construction Supply Cost 
(E) Purchased Equipment Cost 



(Y L SURF-AVG-MTPD) = 293.270(T)0.792 
(Y S SURF-AVG-MTPD) = 353.649(T)0' 792 
(Y E SURF-AVG-MTPD^ = 215.640(T) - 792 



UNDERGROUND REPAIR SHOP AND WAREHOUSE FACILITIES 

Underground facility costs are based on excavating and equipping well-illuminated, 
painted, and concrete-floored repair shops and warehouses. If underground repair 
shop and warehouse space requirements are known the capital cost estimate may be 
made directly by consulting the curve (the curve is valid for areas between 300 to 
3,400 m 2 ). if space requirements are not known they can be estimated from the 
following equation: 

Square meters = 53.646(T) ' 376 

where: T = ore and waste mined, in metric tons per day. 

The final underground repair shop and warehouse cost derived from the curve is a 
combination of the following costs: 



Construction labor cost.. 
Construction supply cost. 
Purchased equipment cost. 



Small 

(300 to 

2,300 m 2 ) 

23% 

30% 

47% 



Large 
(2,300 to 
3,400 m 2 ) 

21% 

29% 

50% 



The total underground repair shop and warehouse capital cost is 

( Y c UNDERGROUND-SQUARE METER ) = 79. 664 (X) 1 * 189 and is distributed as follows: 



407 



(L) Construction Labor Cost 



(Y L UG-SM-SQ M> = 20.713CX) 1 - 189 
t (Y S UG-SM-SQ M) " 31.866(X)1-189 



(S) Construction Supply Cost (Yg UG-SM-SQ 

(E) Purchased Equipment Cost (Y E UG-SM-SQ M> = 27.086 (X) 1,189 

(L) Construction Labor Cost (Y L UG-LG-SQ M^ = 16. 729 (X) 1 * 189 
(S) Construction Supply Cost (Y s UG-LG-SQ M> = 23.103(X) 1,189 
(E) Purchased Equipment Cost (Y E UG-LG-SQ M> = 39.832(X) 1,189 

(L) Construction Labor Cost (Y L UG-AVG-SQ M^ = 18.323CX) 1 * 189 
(S) Construction Supply Cost (Y s UG-AVG-SQ M> = 25.492(X) 1,189 
(E) Purchased Equipment Cost (Y E UG-AVG-SQ M^ = 35.849 (X) 1 * 189 

The total underground repair shop and warehouse capital cost is 

( Y c UNDERGROUND-MTPd) = 8,425.625(T)0* 457 and is distributed as follows: 

(L) Construction Labor Cost (Y L UG-SM-MTPD^ = 2,190.663(T) 0,457 
(S) Construction Supply Cost (Yg UG-SM-MTPD^ = 3,370.'250(T) 0,457 
(E) Purchased Equipment Cost (Y E UG-SM-MTPD^ = 2,864. 712(T) 0,457 

(L) Construction Labor Cost (Y L UG-LG-MTPD) = 1,769.381(T) 0#457 
(S) Construction Supply Cost (Y s UG-LG-MTPD^ = 2,443.431(T) 0,457 
(E) Purchased Equipment Cost (Y E UG-LG-MTPD^ = 4, 212. 813(T) * 457 

(L) Construction Labor Cost (Y L UG-AVG-MTPD^ = 1,937. 894(T) * 457 
(S) Construction Supply Cost (Y s UG-AVG-MTPD^ = 2,696.200(T)0.457 
(E) Purchased Equipment Cost (Y E UG-AVG-MTPD^ = 3,791.531(T) 0,457 

ADJUSTMENT FACTORS 

Weather Factor For underground mines with surface facilities located in climates 

that vary from the Denver, CO, area, multiply labor and supplies portions of the 
costs obtained from the surface facilities curve by the following factors: 

Mild areas: 

Labor factor (F L SURFACE-MILD^ = °- 94 

Supplies factor (F s SURFACE-MILD> = °- 94 

Severe areas: 

Labor factor (F L SURFACE-SEVERE > =1-08 

Supplies factor (F s SURFACE-SEVERE) = 1 ' 0Q 

Room-and-Pillar Mine Factor For room and pillar mines with underground facilities 
emplaced in mined out areas, multiply the costs obtained from the curves by the 
following factors: 

Labor factor (F L R&P MINED UT AREAS > =0.48 

Supplies factor (F s R&p MINED 0UT areas) = 0.41 

Multilevel Mine Factor Multilevel mines commonly have satellite shops on each 

active producing level for equipment maintenance and minor repairs. The cost 
for satellite repair shops is 



408 



Satellite repair shops cost (Y s ) = (N)9. 710(T)°* 914 
where N = number of active producing levels, 
and T = ore mined, in metric tons per day. 

Add the cost for satellite repair shops to the costs obtained from the curves to 
obtain a total cost. 



409 



Underground Mining— Capital Costs 



10,000 



CO 

_ 

"o 
-o 



m 

c 

D 
(0 

O 

-C 



CO 

o 
o 



1,000 



100 



10 



I 1 


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c= 


i 


r 1 — 
























aurrace r acuities 

0.856 
- Y c=1, 089.1 74(X) 

40<X< 17,000 
























































— ^ 


/ 






























// 


/ 


/ 


































































A 


































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Y / 






























6 


$/ 


t 


* 






























> / 


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Or 
■j 






























/ 




i 


— 






Underground Facilities 

Y C =79.644(X) 
300 <X<3,400 






/ 


/ 


































1 1 1 I 1 III 



10 100 1,000 10,000 

FLOOR SPACE, square meters 

4.2.5. 8. a Repair shops and warehouses 



100,000 



10 



Underground Mining— Capital Costs 



10,000 



o 
•o 



W 

-a 

c 
o 
w 

=J 
o 



CO 

O 
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1,000 



100 



10 







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Surface Facilities 

, ,0.792 
_ Y c = 862.559(X) 

300 <X< 63,000 






























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< 
























£ 


s 






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l 1 J J r— •!• 


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Underground Facilities ■ 

457 
V c = 8,425.625(X) 


















i 


50 


o <x 


< 63,( 


DOC 


) 



100 1,000 10,000 

ORE AND WASTE, metric tons per day 

4.2.5.8.D Repair shops and warehouses 



100,000 



411 
4.2. UNDERGROUND MINING— CAPITAL COSTS 
4.2.5. MINE PLANT GENERAL OPERATIONS 
4.2.5.9. STOCKPILE STORAGE FACILITIES 

A stockpile storage facility provides sufficient storage capacity for a material 
until it can be further processed. A storage facility may also provide adequate 
reserve material to dampen surges in the material supply. Examples of materials 
stockpiled are smelter flux, coal, and coarse ore. For this base curve, capital 
cost is correlated to the live storage capacity of the stockpile facility. Live 
storage capacity of a stockpile is normally about 25% of the total stockpile 
capacity and 150% of the daily stockpile reclaim rate. The stockpile storage 
facility capital cost includes all costs associated with acquisition and installa- 
tion of stockpiling conveyors, reclaim tunnels, reclaim feeders, and reclaim 
conveyors. 

BASE CURVE 

The total capital cost is based on a single cost curve having a live storage capa- 
city (X), in metric tons. The curve is valid for capacities of 3,000 to 300,000 mt, 
operating two shifts per day. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 13% 

Construction supply cost 36% 

Purchased equipment cost 51% 

A typical breakdown of the major cost components is: 

Reclaim feeders 14% 

Stockpiling conveyor 23% 

Reclaim tunnels 31% 

Reclaim conveyors 32% 

The total stockpile storage facility capital cost is (Y c ) = 1, 401. 013 (X) 0,598 
and is distributed as follows: 

(L) Construction labor cost (Y L ) = 182. 132 (X) ' 598 

(S) Construction supply cost (Y s ) = 504.365(X) 0,598 

(E) Purchased equipment cost (Y E ) = 714. 516(X) 0,598 



412 



Underground Mining— Capital Costs 



10,000 



0) 

_o 

"5 
■o 



§ 1.000 

■D 

o 



10 

o 

o 



100 



































































































































/ 


























2 


y 
























/ 




















































/ 


/ 
































0.598 
Y c = 1,401. 01 3(X) 

3,000 < X < 300,000 


iii i iii 



1,000 10,000 100,000 

CAPACITY, metric tons live storage 



1,000,000 



4.2.5.9. Stockpile storage facilities 



413 
4.2. UNDERGROUND MINING— CAPITAL COSTS 
4.2.5. MINE PLANT GENERAL OPERATIONS 
4.2.5.10. SURFACE BUILDINGS 

Surface building capital costs cover the general support facilities required for the 
mining operation. The buildings are single-story construction. The total capital 
cost is based on a single cost curve having a combined floor space (X), in square 
meters or having a production rate (T), in total metric tons of ore and waste per 
day. The curve is valid for areas of 20 to 20,000 m^, or production rates of 290 
to 12,000 mtpd, operating three shifts per day. 

BASE CURVE 

Through use of the base curve, the evaluator may determine the total cost of all 
buildings covered in this category. These buildings include the change house, 
powder magazines, lamproom, first aid room, guard house, and security fences. The 
determined cost encompasses construction material, construction labor, as well as 
purchase and installation of the building fixtures. 

If the total required floor space is not known, the final cost may be estimated by 
first determining the staffing or labor requirements needed based on the number of 
metric tons to be mined each day. In a three-shif t-per-day operation, the surface 
building area needed equals approximately 2.23 m^ for each individual employed in 
the mining operation. By taking the daily tonnage mined and dividing that number by 
the appropriate tonnage per worker ratio found in the tabluation on the following 
page, one derives an estimate of the daily labor requirements. If this value is 
further divided by three shifts per day and the resultant answer multiplied by 2.23, 
an estimate of the square meter requirements for surface buildings can be achieved. 

Square meters requirement (Xg) = 0.743(T/R) 
where T = ore and waste mined, in metric tons per day, 

and R = metric tons per worker-shift ratio (see tabluation on following 
page). 

The final answer is then entered into the square meters base curve equation. 

The surface buildings capital cost derived from the curve is a combination of the 
following costs: 

Construction labor cost 32% 

Construction supply cost 51% 

Purchased equipment cost 17% 

The total surface buildings capital cost is (Y^ SQUARE METERS^ = 
8,987.000(X) - 684 and is distributed as follows: 



414 

(L) Construction Labor Cost (Y L SQUARE METERS^ = 2 , 875. 840(X) °* 684 

(S) Construction Supply Cost (Y s SQUARE METERS^ = 4, 583. 370(X) - 684 

(E) Purchased Equipment Cost (Y E SQUARE METERS^ = 1 , 527. 790(X)°' 684 

The total surface buildings capital cost is (Y c MTPD^ = 13,552.211(T) 0,436 and 
is distributed as follows: 

(L) Construction Labor Cost (Y L MTPD ) = 4,336. 708(T)°* 436 

(S) Construction Supply Cost (Y s MTPD^ = 6,911 .628(T) ' 436 

(E) Purchased Equipment Cost (Y E MTPD> = 2, 303.876(T) 0,436 

Productivity of mining methods 





Metric tons/worker-shift ratio 


Method 


Normal 


High 




27-45 


45-64 




18-36 


36-45 




14-36 


36-45 




14-2 7 


27-36 


Cut and fill mining.... 


9-18 


18-25 




4.5- 9 


9-14 




1- 3 


NAp 



NAp Not applicable. 

Source: Modified from Society of Mining Engineers AIME Underground Mining 
Methods Handbook, ed. by W.A. Hustrulid, 1982, p. 109. 

ADJUSTMENT FACTORS 

Joint Facility Factor If mine and mill share these facilities it is important to 
reduce the capital cost of the mine section appropriately. To determine the 
capital cost in this instance, calculate the total space requirements for both 
mine and mill and the percentage each facility requires. The amount to be 
accounted to mine capital cost can be then calculated, using the base curve, 
from the mine's percentage of the total space requirements. 

Weather Factor For surface buildings located in climates that vary from the Denver, 
CO, area, multiply the labor and supplies costs obtained from the curves by the 
following factors: 

Mild areas: 

Labor factor (F L MILD^ = 0*960 

Supply factor (F s MILD^ = 0*940 

Severe areas : 

Labor factor (Fl SEVERE ) = 1*080 

Supply factor (F g S EVERE ) = U080 



415 

Shift Factor Where a proposed mine will be operating less than three shifts per 

day, the surface building requirements will rise a fractional amount. The addi- 
tional floor space for the change house should be determined and included with 
the value used in the base curve equation. 



416 



Underground Mining— Capital Costs 



10,000 



n 
o 
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m 

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c 
o 
n 

O 



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1,000 



100 



10 











































































































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> 


































/ 


































A 






































/ 






































































/ 


















































































































0.684 
Y c = 8,987.000(X) 

20 <X< 20,000 
























| | 5 , 1 | i , ! 



10 



100 1.000 10.000 

AREA, square meters 

4.2.5.1 0.a Surface buildings 



100,000 



17 



Underground Mining— Capital Costs 



1,000 



10 

"o 



W 

•a 

c 
o 

10 

o 



CO 

o 
o 



100 





















/ 






















/ 


/ 


r 




















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/ 


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, 0.436 
Y c =1 3,552.21 1(X) 

290 <X< 12,000 

.T 1 1 1 =S " I T -1 



100 1,000 10,000 

ORE AND WASTE, metric tons per day 

4.2.5.1 0.b Surface buiidings 



100,000 



418 

4.2. UNDERGROUND MINING—CAPITAL COSTS 
4.2.5. MINE PLANT GENERAL OPERATIONS 
4.2.5.11. VENTILATION SYSTEM 

Mine ventilation system capital and operating costs are dependent on the energy to 
move a quantity of air through a mine. Some factors that determine mine air quan- 
tity, measured in cubic meters per minute, are the number of personnel underground, 
diesel equipment operation, presence or absence of methane, and air temperature and 
humidity. Energy, measured in kilowatts, required to move an air quantity through a 
mine is dependent on the mine's pressure head or mine head, measured in pascals. 
Factors that affect mine head are airway length, airway perimeter, airway perimeter 
roughness, air velocity, and overall configuration of the airways. 

Costs derived using this cost-equation are valid for proposed or recently opened 
mines. For older, more complex ventilation systems with numerous shafts, 
levels, and working areas, more reliable costs may be determined by obtaining the 
actual equipment and installation cost data from the mine owner and equipment 
manufacturers . 

If mine air quantity and mine pressure head (measured in pascals) are known, consult 
the base curves directly. If mine air quantity and mine head are not known, 
requirements may be estimated using the information below. 

Air quantity per metric ton Mine head 
Mining Method (m^/min/mt) (Pa) 

Room and pillar: 

Range 0.539-5.208 1,245-2,191 

Average 1.917 1,609 

Sublevel caving, panel caving, 

sublevel blasthole, VCR, longhole : 

Range 1.158-7.881 872-3,586 

Average 3.394 2,111 

Block caving: 

Range 0.607-1.784 1,718-5,727 

Average 1.163 2,117 

Cut and fill, shrinkage, square 

set: 

Range 2.172-5.073 1,992-6,723 

Average 3.789 4,171 

(Pressure head conversions 1 psi = 27.7 in H2O = 6.8948 kPa) 

BASE CURVE 

Total cost is based on a single cost curve having a mine air quantity demand (X), in 
cubic meters per minute. The curve is valid between 1,000 and 60,000 nH/min, 
operating three shifts per day. The excavation cost for airways (i.e. drifts, 
crosscuts, shafts, and/or raises) are not included in this curve and should be 
derived in section 4.2.1., Preproduction Development. 



419 

The ventilation curve cost includes the installed cost of the main ventilation sys- 
tem and acquisition cost of auxiliary ventilation equipment. Main system installa- 
tion includes the cost of labor, fans, foundations, motors, ductwork, bulkheads, and 
air doors. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 19% 

Construction supply cost 13% 

Purchased equipment cost 68% 

The total ventilation system capital cost is (Y c ) = 278,119. 058e°' 00004 ( x ) and 
is distributed as follows: 

(L) Construction Labor Cost (Y L ) = 52,842.621e°' 00004 ( x) 

(S) Construction Supply Cost (Y s ) = 36,155.478e°- 00004 ( x ) 

(E) Purchased Equipment Cost (Y E ) = 189,120.959e°* 00004 ( x) 

ADJUSTMENT FACTORS 

Air-Cooling and Air-Warming Factors Depending on climatic and /or underground condi- 
tions, mine air may need to be warmed and /or cooled. If a ventilation system 
supplies intake air through a service shaft and outside temperatures go below OC 
(32F) for an extended period of time, air-warming is necessary. Air-cooling 
plants are used when mine air wet-bulb and dry-bulb temperatures are near or 
above 27C (80F) because of a hot climate, high wall rock temperatures, and /or 
high water temperatures. 

If air cooling is required, multiply the cost obtained from the ventilation 
system curves by the following factors: 

Labor factor (F L COOLING) = 1 * 10 

Supply factor (F s COOLING) = 1 ' 15 

Purchased equipment factor (Fg COOLING^ = 1»30 

If air warming is required, multiply the cost obtained from the ventilation 
system curves by the following factors: 

Labor factor (F^ WARMING^ = 1*10 

Supply factor (F s WARMING^ = 1 « 11 

Purchased equipment factor (Fj? WARMING^ = 1*10 



\ 2 



Underground Mining— Capital Costs 



10,000 



"5 



W 
T3 

C 

o 
in 

o 

x: 



b- 
00 

o 
o 



1,000 



100 



























































































































































































0.00004(X) _ 
Y c = 278,11 9. 058e V J 

1,000 <X< 60,000 










ii i ill 



1,000 10,000 100,000 

AIR QUANTITY, cubic meters per minute 

4.2.5.11. Ventilation system 



421 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.5. MINE PLANT GENERAL OPERATIONS 

4.2.5.12.1. WATER AND DRAINAGE SYSTEM 

DRAINAGE AND DISPOSAL SYSTEM 

The capital cost of a drainage system is based upon the volume of water pumped daily 
from the underground workings. The system is composed of pumping equipment, pipes, 
connectors, valves, sumps, service adits and pumping stations, formwork, concrete 
flooring, miscellaneous wiring, and maintenance equipment. Discharged water is 
pumped through piping to a surface mill or tailings pond. 

BASE CURVE 

The total capital cost is based on a single curve having a water discharge rate (X), 
in cubic meters per day. The curve is valid for pumping operations between 600 and 
20,000 m 3 /d, operating 24 h/d. A standard pumping height of 610 m (2,000 ft) is 
used. Allowances have been made for pumping head versus pumping height. As 
individual cases will invariably require adjustment for depth, an appropriate factor 
is given in the adjustments section below. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 15% 

Construction supply cost 19% 

Purchased equipment cost 66% 

The total drainage supply system capital cost is (Y c ) = 1,093.057(X) 0,690 and is 
distributed as follows: 

(L) Construction Labor Cost (Y L ) = 163.959(X) ' 690 

(S) Construction Supply Cost (Y s ) = 207.68KX) 0,690 

(E) Purchased Equipment Cost (Y E ) = 721.418(X)°* 690 

ADJUSTMENT FACTORS 

Total Pumping Height When pumping heights differ from the 610 m (2,000 ft) standard 
used here, multiply the costs obtained from the drainage and disposal curves by 
the following factor: 

Height factor (F H ) = 0.642e°* 0008 ( H) 
where: H = actual pumping head, in meters. 

Horizontal Drainage Factor If drainage water is collected, and initial settling 
occurs in sumps located in the mine prior to pumping the water out through the 
portal of an adit (rather than up a shaft), multiply the costs obtained from the 
drainage and disposal curves by the following factor: 



422 



Horizontal drainage factor (Fq SETTLING^ = ^«37 

This cost is distributed 36% for labor, 44% for supplies, and 20% for 

equipment. 

If drainage water is pumped directly out of an adit portal without initial set- 
tling, multiply the costs obtained from the drainage and disposal curves by the 
following factor: 

Horizontal drainage factor (Fp jjo SETTLING^ = 0*22 

This cost is distributed 32% for labor, 39% for supplies, and 29% for 

equipment. 



423 



Underground Mining— Capital Costs 



10,000 



CO 

I- 

=5 1,000 



in 

c 

D 

in 

O 

-C 



in 
o 
o 



100 



10 



































































































































































/' 






























































































































r 




























































































, 0.690 
Y C =1,093.057(X) 

600 <X< 20,000 










i 






III I III 



100 1.000 10,000 100,000 

DISCHARGE RATE, cubic meters water per day 

4.2.5.12.1. Water and drainage system 
DRAINAGE AND DISPOSAL SYSTEM 



424 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.5. MINE PLANT GENERAL OPERATIONS 

4.2.5.12.2. WATER AND DRAINAGE SYSTEM 

WATER SUPPLY SYSTEM (MAKEUP WATER) 

The capital cost of a water supply system is based on volume demand and includes 
a method for collection, storage, and distribution of water. A mine and mill near 
to each other typically use the same water system. Water systems capable of supply- 
ing up to 125 m^/h (550 gal/min) of makeup water usually comprise a system of 
wells, storage tanks at the mine site, and distribution lines between the various 
use locations. Larger systems generally include long, large-diameter pipelines and/ 
or an earthen dike reservoir. The capital cost of the first of these cases is dis- 
cussed in this section as it is typical of an underground mine or a small combined 
mine and mill complex using less than 125 m^ of makeup water per hour. Capital 
cost for larger joint-use mine-mill systems can be calculated in section 6.1.8.14 
(IC 9143). 

If water quantity requirements are known and are less than 125 m^/h, consult the 
base curve directly. Water volume required for an underground mine is dependent on 
the principle type of drilling equipment used, the major water user in underground 

mines. 

Air-leg drills 

Water requirement 1 Y(y AIR-LEG DRILL ^ = 0.049 (Xi)°* 889 

Jumbo and DTH drills 

Water requirement 1 Y( w jumB0/DTH DRILL> = 0.025(X 1 )°- 749 

where: X^ = metric tons ore mined per day 

1 Daily water quantity = m^/h x 16 operating h/d. 

Mill quantity requirements should be estimated from section 7.1.8.14.2. (IC 9143). 
Capital cost for an isolated mine (i.e., no adjacent mill) is derived directly from 
the base curve. For a joint-use system, combine mine and mill requirements and 
derive the total capital cost from the appropriate curve. 

BASE CURVE 

Total cost is based on a single cost curve having water requirements (X), in cubic 
meters per day. The curve is valid for water volumes between 40 and 2,000 m-Vd, 
operating two shifts per day. The curve includes all costs associated with comple- 
tion of wells, purchase and installation of pumps, storage tanks, and surface 
distribution lines. 

The capital cost derived from the curve is a combination of the following costs: 

Construction labor cost 37% 

Construction supply cost 55% 

Purchased equipment cost 8% 



425 

The total water supply system capital cost is (Y c ) = 1,477.799(X) 0,693 and Is 
distributed as follows: 

(L) Construction Labor Cost (Y L ) = 546.786 (X) 0,693 

(S) Construction Supply Cost (Ys) = 812. 789 (X) * 693 

(E) Purchased Equipment Cost (Y E ) = 118.224(X) ' 693 

ADJUSTMENT FACTORS 

Mine Drainage Factor The user should be aware that mine and /or mill water require 
ments can be fully or at least partially met by mine drainage. Based on percen- 
tage of the system requirements supplied by mine drainage, construction supply 
cost should be reduced up to 29% and construction labor cost should be reduced 
up to 43% (i.e., if 40% of the system quantity is supplied by drainage, reduce 
supplies by 0.40 x 29% = 11.6% and labor by 0.40 x 43% = 17.2%). 

Joint-Use Factor After deriving the joint-use water system capital cost from the 
appropriate curve using the combined mine and mill water quantity requirements, 
allocate mine capital cost versus mill capital cost based on the percentage of 
water quantity demand (i.e., if the mine requires 10% of the total quantity, 
capital cost is split 10% mine and 90% mill). 

Purchased Water Factor If water is currently being purchased from an existing 

municipal system, the costs for completion of the wells and installation of the 
pumps should be removed from the capital cost total. Multiply the costs obtain- 
ed from the curves by the following factors: 

Labor factor (F L ) = 0.91 

Supply factor (F s ) = 0.94 

Purchased equipment factor (Fg^ = 0*00 

This will completely eliminate the equipment portion of the curve. 



426 



Underground Mining— Capital Costs 



1,000 



n 
o 
o 

T7 



CO 
"O 

c 

D 

a 
O 



o 
o 



100 



10 









































































































































A 






/ 






















/ 


7^ 
















































































/ 






/ 






















0.693 
C =1.477.799(X) 

40<X< 2,000 








' 










Y 




; 





10 100 1,000 

VOLUME DEMAND, cubic meters per day 

4.2.5.12.2. Water and disposal system 
WATER SUPPLY SYSTEM (MAKEUP WATER) 



10,000 



427 

4.2. UNDERGROUND MINING—CAPITAL COSTS 

4.2.7. INFRASTRUCTURE 

4.2.7.1.1. ACCESS ROADS 
CLEARING 

The total cost per kilometer is the sum of two separate cost curves (labor and 
equipment operation) having a roadway width (X), in meters. The curves are valid 
for widths between 3 and 30 m, operating one shift per day. This cost is multi- 
plied by the total kilometers to obtain the capital cost. Each curve includes all 
of the daily operating and maintenance costs associated with clearing for access 
roads. Supplies have not been considered in the clearing costs because it is 
assumed that cleared brush or timber would be buried under the excavation waste; 
thus, supplies of fuel oil for burning the clearing slash are not required. 

BASE CURVE 

The curves are based on estimated costs for clearing medium growth on terrain with a 
side slope of 25%. Medium growth varies from heavy brush to one tree, 0.33 m in 
diameter, per 40 m^. 

(L) Labor Operating Cost (Y L ) = 1135.467(X)°* 711 

The operating labor costs are distributed as follows: 

Direct labor 86% 

Maintenance labor 14% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Dozer operator 12% $16.33 

Wheel-loader operator 12% 16.33 

Flatbed-truck driver 12% 15.89 

General laborer 64% 13.86 

The average wage for labor is $14.63 per worker-hour (including burden and 
average shift differential). 

(E) Equipment Operating Cost (Y E ) = 467.945(X)°* 711 

The equipment operating cost consists of 35% for repair parts, 53% for fuel and 
lubrication, and 12% for tires. 

The equipment operation curve consists of: 

Dozer crawler 31% 

Wheel loader 47% 

Flatbed truck 12% 

Pickup truck 9% 

Chainsaws 1% 



48% 


- 


43% 


21% 


80% 


11% 


90% 


2% 


61% 


- 



428 

The equipment operating cost distribution is 

Repair parts Fuel and lube Tires 

Dozer crawler 52% 

Wheel loader 36% 

Flatbed truck 9% 

Pickup truck 8% 

Chainsaws 39% 

ADJUSTMENT FACTORS 

Brush Factor For light clearing conditions where the growth consists mainly of 
brush and small trees, multiply the curves by the following factor: 

Brush factor (Fg LIGHT^ = 0*25 

For heavy clearing conditions, defined as when clearing a dense growth of trees 
(diameter of the trees commonly exceeding 0.33 m), multiply the curves by the 
following factor: 

Brush factor (F B DENSE^ = I* 75 

Side Slope Factor For clearing on terrain with side slopes other than 20% to 30% 
multiply the curves by the following factors: 

For clearing on terrain with side slopes of 0% to 20%, 

Side slope factor (Fg o%-20%^ = ^*® 
For clearing on terrain with side slopes of 30% to 50%, 

Side slope factor (Fg 30%-50%^ = ^-*® 
For clearing on terrain with side slopes of 50% to 100%, 

Side slope factor (Fg 50%-100%^ = ^»5 

Burning Equation If fuel oil (for burning slash) or other supplies, such as cables 
and chokers, are used, add the following supply cost equation to the total cost 
per kilometer. The total cost per kilometer for supplies is for a roadway of 
width (X), in meters, varying in width from 3 to 30 m. 

(S) Supply Operating Cost (Yg BURNING) = 269. 796[ 0.100(X) ]" * 0303 

This cost is multiplied by the total kilometers, valid for values between 3.33 
to 3,333.33 km, to obtain the capital cost. 

For clearing operations from 1 to 500 ha (roadway width in meters multiplied by 
roadway length in meters multiplied by 0.0001), the supplies consist of 78% for 
fuel oil and 22% for tools, cables, and chokers. For clearing operations of 500 
to 1,000 ha, supplies consist of 83% for fuel oil (for burning wood and scrub) 
and 17% for tools, cables, and chokers. 



429 

Equipment Factor Where it is necessary to purchase equipment, or have a subcontrac- 
tor perform the work, multiply the equipment operation value by the following 
applicable factor in order to obtain the total value of equipment expense for 
ownership and operation: 

Shifts per day 1 2 3 

Factor 1.91 1.68 1.61 

Subcontractor Factor If a subcontractor is used, to compensate for the subcontrac- 
tor's markup, multiply the costs obtained from the curve by the following 
factors: 

Labor factor (F]0 =1.5 

Supply factor (Fg) = 1.2 

Equipment operation factor (Fe^ = 1*2 



430 



Underground Mining— Capital Costs 



100,000 



c 



* 10,000 

Q. 



o 



o 



CO 
O 

o 



1,000 



T 1 1 














" Y, = 1,135.4€7(X)°' 7 
_ L 0.711 
Y E = 467.945(X) 

3 < X < 30 


























































/ 


















*/ 


' 
















f" 


















A 


n o 6 -^ 


\ ^^ 












/ v£ 


f\ 


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10 
WIDTH, meters 



100 



4.2.7.1.1. Access roads 
CLEARING 



431 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.7. INFRASTRUCTURE 

4.2.7.1.2. ACCESS ROADS 

DRILL AND BLAST 

The total cost per kilometer is the sum of three separate cost curves (labor, supp- 
lies, and equipment operation) for a roadway width (X), in meters. The curves are 
valid for widths between 3 and 30 m, operating one shift per day. This cost is mul- 
tiplied by the total kilometers to obtain the capital cost. Each curve includes all 
of the daily operating and maintenance costs associated with drilling and blasting 
for access roads. 

BASE CURVE 

The curves are based on estimated costs for drilling and blasting a cut with a 
single ditch. The terrain has a side slope of 25%, and the cut contains 50% rock. 

(L) Labor Operating Cost (Y L ) = 9,633.822(X) * 496 

The operating labor costs are distributed as follows: 

Direct labor 79% 

Maintenance labor 21% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Air-track driller 33% $16.78 

Compressor operator 17% 17.23 

Chuck tender 27% 13.86 

Powderman 8% 16. 33 

Powderman helper 7% 14. 56 

Flatbed-truck driver 8% 15. 89 

The average wage for labor is $15.68 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 7,247.524(X) * 644 

The supply cost consists of 79% blasting supplies and 21% drilling supplies. 
Drilling supplies consist of percussion drill bits, rods, striking bars, and 
couplings; blasting supplies consist of dynamite, ANFO, electric blasting caps, 
and connecting wire. 

(E) Equipment Operating Cost (Y E ) = 4,109.384(X) * 496 

The equipment operation curve consists of 51% for repair parts, 48% for fuel and 
lubrication, and 1% for tires. 

The equipment operation curve consists of: 



432 

Air-track drills 33% 

Portable compressors 55% 

Flatbed truck 7% 

Pickup truck 5% 

The equipment operating cost distribution is 

Repair parts Fuel and lube Tires 

Air-track drills 93% 7% 

Portable compressors 34% 65% 1% 

Flatbed truck 9% 80% 11% 

Pickup truck 8% 90% 2% 

ADJUSTMENT FACTORS 

Rock Factor For drilling and blasting cuts that contain other than 50% rock, multi- 
ply the curves by the following factors: 

For drilling and blasting cuts containing 25% rock, 

Rock factor (Fr 25%^ = 0.6 
For drilling and blasting cuts containing 100% rock, 

Rock factor (Fr ioo%) = 1*4 

Side Slope Factor For terrain with side slopes of 0% to 20% that require drilling 
and blasting for two ditches and for providing material for a minimum fill, the 
base curve costs should be used without any adjustments. 

For clearing on terrain with side slopes of 20% to 50%, multiply the costs 
obtained from the curves by the following factors: 

Side slope factor (Fg 20%-50%) ~ 1«5 

On terrain with side slopes in the range of 50% to 100%, multiply the costs 
obtained from the curves by the following factors: 

Side slope factor (F s 50%-l00% ) =3.0 

Equipment Factor Where it is necessary to purchase equipment, or have a subcontrac- 
tor perform the work, multiply the equipment operation value by the following 
applicable factor in order to obtain the total value of equipment expense for 
ownership and operation: 

Shifts per day 1 2 3 

Factor 2.12 1.84 1.75 

Subcontractor Factor If a subcontractor is used, to compensate for the subcontrac- 
tor's markup, multiply the costs by the following factors: 



433 
Labor factor (F L ) = 1.5 
Supply factor (Fg) = 1.2 
Equipment operation factor (Fj?) = 1*2 



4 34 



Underground Mining— Capital Costs 



100,000 



c 

(0 



o 

E 
o 

3 

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Q. 



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CO 

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10,000 



1,000 



































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e^ 




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^£a 


s^ 














s' 










































Y L = 9,633.822(X)°' 496 " 

, ,0.644 
Y s = 7,247.524(X) 

0.496 _ 
Y E = 4,109.384(X) 

3 <X< 30 




























I III 



10 
WIDTH, meters 

4.2.7.1.2. Access roads 
DRILL AND BLAST 



100 



435 

4.2. UNDERGROUND MINING—CAPITAL COSTS 

4.2.7. INFRASTRUCTURE 

4.2.7.1.3. ACCESS ROADS 
EXCAVATION 

The total cost per kilometer is the sum of two separate cost curves (labor and 
equipment operation) having a roadway width (X), in meters. The curves are valid 
for widths between 3 and 30 m, operating one shift per day. This cost is multi- 
plied by the total kilometers to obtain the capital cost. Each curve includes all 
of the daily operating and maintenance costs associated with excavation for access 
roads. 

BASE CURVES 

The curves are based on a dozer excavation operation that is working on terrain with 
a side slope of 25%, side-casting from cuts or ditches to a 30-cm fill or to waste. 
The material to be excavated is either blasted rock or a common conglomerate that 
presents some difficulty in cutting and drifting. 

(L) Labor Operating Cost (Y L ) = 29.843(X) 1 * 870 

The operating labor costs are distributed as follows: 

Direct labor 60% 

Maintenance labor 40% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Dozer operator 60% $16.33 

Grader operator 20% 16.33 

Water-truck driver 20% 15.89 

The average wage for labor is $16.24 per worker-hour (including burden and 
average shift differential). 

(E) Equipment Operating Cost (Y E ) = 27.128(X) 1 * 870 

The equipment operation curve consists of 46% for repair parts, 50% for fuel and 
lubrication, and 4% for tires. 

The equipment operation curve consists of 

Dozer crawlers 47% 

Dozer-ripper crawler 25% 

Motor grader 15% 

Water truck 9% 

Pickup truck 4% 



49% 


- 


47% 


- 


41% 


14% 


55% 


16% 


90% 


2% 



436 

The equipment operating cost distribution is 

Repair parts Fuel and lube Tires 

Dozer crawlers 51% 

Dozer ripper crawler 53% 

Motor grader 45% 

Water truck 29% 

Pickup truck 8% 

ADJUSTMENT FACTORS 

Side Slope Factor On terrain with a side slope other than 20% to 30%, excavation 

costs can be determined by multiplying the costs obtained from the curves by the 
following factors: 

For clearing on terrain with side slopes of 0% to 20%, 

Side slope factor (Fg 0-20%) = [0.8(S) ]0.600(W) ' 756 
where S = side slope [defined as l+(percent slope/100)], 
and W = roadway width, in meters. 

For clearing on terrain with side slopes of 30% to 100%, 

Side slope factor (F s 30-100%) = [ 0.8(S) ]3.958(W)0. 087 
where S = side slope [defined as l+(% slope/100)], 
and W = roadway width, in meters. 

Material Factor For excavation of materials that are easy to cut and drift, multi- 
ply the costs obtained from the curves by the following factors: 

Material factor (F^ eaSY^ = 0.75 

For excavation of extremely wet and sticky material, multiply the curves by the 
following factors: 

Material factor (F^ DIFFICULT ^ = 1*33 

Equipment Factor Where it is necessary to purchase equipment, or have a subcontrac- 
tor perform the work, multiply the equipment operation cost obtained from the 
curve by the following applicable factor in order to obtain the total value of 
equipment expense for ownership and operation: 

Shifts per day 1 2 3 

Factor 1.94 1.71 1.63 

Subcontractor Factor If a subcontractor is used, to compensate for the subcontrac- 
tor's markup, multiply the costs obtained from the curves by the following 
factors : 

Labor factor (F^ = 1*5 

Equipment operation factor (F]?) = 1»2 



437 



Underground Mining— Capital Costs 



100,000 



c 

0) 



ID 
<D 

E 

_o 

® 
a. 

(0 

\_ 
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"o 
•o 



CO 

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10,000 



1,000 



100 































































































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1.870 
Y L = 29.843(X) 

/ J- 870 
Y E = 27.1 28(X) 

3 <X< 30 




/ / 
























i iii 



10 



100 



WIDTH, meters 



4.2.7.1.3. Access roads 
EXCAVATION 



438 

4.2. UNDERGROUND MINING—CAPITAL COSTS 

4.2.7. INFRASTRUCTURE 

4.2.7.1.4. ACCESS ROADS 

GRAVEL SURFACING 

The total cost per kilometer is the sum of three separate cost curves (labor, supp- 
lies, and equipment operation) for a roadway width (X), in meters. The curves are 
valid for widths between 3 and 30 m, operating one shift per day. This cost is mul- 
tiplied by the total kilometers to obtain the capital cost. Each curve includes all 
of the daily operating and maintenance costs associated with gravel surfacing of 
access roads. 

BASE CURVE 

The curves are based on costs for preparing a road subbase, spreading surfacing 
material on the roadway, and compacting the surfacing material to a depth of 0.20 m. 
The surfacing material is delivered to the jobsite in suppliers' trucks. 

(L) Labor Operating Cost (Y L ) = 293.304(X) * 667 

The operating labor costs are distributed as follows: 

Direct labor 83% 

Maintenance labor 17% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Grader operator 21% $16.33 

Roller operator 21% 16. 33 

Dumpman 18% 13.86 

Grade checker 20% 15. 89 

Water-truck driver 20% 15. 89 

The average wage for labor is $15.66 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 6,880. 012(X) 1 - 006 

The supply cost consists of 100% road surfacing gravel (minus 1.9 cm). The 
gravel, delivered and dumped on the roadbed by suppliers' trucks, costs $13.76 
per metric ton. 

(E) Equipment Operating Cost (Y E ) = 135.032(X)°« 667 

The equipment operation curve consists of 37% for repair parts, 51% for fuel and 
lubrication, and 12% for tires. 



439 



Fuel and lube 



Tires 



The equipment operation curve consists of 

Motor grader 42% 

Rubber-tired, self- 
propelled roller 19% 

Water truck 26% 

Pickup truck 13% 

The equipment operating cost distribution is 

Repair parts 

Motor grader 45% 

Rubber-tired, self-propelled 

roller 49% 

Water truck 29% 

Pickup truck 8% 

ADJUSTMENT FACTORS 

Equipment Factor Where it is necessary to purchase equipment, or have a subcontrac- 
tor perform the work, multiply the equipment operation cost obtained from the 
curve by the following applicable factor in order to obtain the total value of 
equipment expense for ownership and operation: 



41% 


14% 


40% 


11% 


55% 


16% 


90% 


2% 



Shifts per day, 
Factor 



1 
2.05 



2 
1.79 



3 
1.70 



Subcontractor Factor If a subcontractor is used, to compensate for the subcontrac- 
tor's markup, multiply the costs obtained from the curves by the following 
factors: 

Labor factor (F^) =1.5 

Supply factor (F s ) = 1.2 

Equipment operation factor (Fg) = 1.2 



440 



Underground Mining— Capital Costs 



1.000,000 



o» 

c 
© 


100,000 


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100 



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V OL 




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0.667 
















it — ZbJ.JUt\A; 

, v 1.006 

Y s = 6, 880.01 2(X) 

Y E = 135.035(X)°' 6€ 
3 <X< 30 


































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10 
WIDTH, meters 

4-.2.7.1.4. Access roads 
GRAVEL SURFACING 



100 



441 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.7. INFRASTRUCTURE 

4.2. 7. L. 5. ACCESS ROADS 
PAVING 

The total cost per kilometer is the sum of three separate cost curves (labor, supp- 
lies, and equipment operation) for a roadway width (X), in meters. The curves are 
valid for widths between 3 and 30 m, operating one shift per day. This cost is mul- 
tiplied by the total kilometers to obtain the capital cost. Each curve includes all 
of the daily operating and maintenance costs associated with paving of access roads. 

BASE CURVE 

The curves are based on a paving operation for laying and compacting hot-mix asphalt 
concrete (purchased locally from a hot-mix plant) to a depth of 5.1 cm. Costs to 
produce an appropriate paving road base are covered in section 4.2.7.1.4., Gravel 
Surfacing. 

(L) Labor Operating Cost (Y L ) = 117. 710(X) 1 ' 005 

The operating labor costs are distributed as follows: 

Direct Labor 80% 

Maintenance Labor 20% 

The direct labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Paver operator 13% $16.33 

Roller operator 26% 16.33 

General laborer 22% 13.86 

Rear-dump truck driver 39% 15.89 

The average wage for labor is $15.55 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 2,661.382(X) 1 ' 005 

The supply cost consists of 100% asphalt concrete (minus 1.9-cm hot mix). The 
asphalt concrete, supplied by a local hot-mix plant, costs $26.37 per metric 

ton. 

(E) Equipment Operating Cost (Y E ) = 68.436(X) 1 * 005 

The equipment operation curve consists of 32% for repair parts, 58% for fuel and 
lubrication, and 10% for tires. 



442 

The equipment operation curve consists of 

Asphalt paver 20% 

Rubber-tired, self-propelled 

roller 5% 

Steel-wheeled, tandem roller 5% 

Rear-dump trucks 64% 

Pickup truck 6% 

The equipment operating cost distribution is 

Repair parts Fuel and lube Tires 

Asphalt paver 68% 32% 

Rubber-tired, self-propelled 

roller 43% 51% 6% 

Steel -wheeled, tandem roller 50% 50% 

Rear-dump trucks 22% 63% 15% 

Pickup truck 8% 90% 2% 

ADJUSTMENT FACTORS 

Supply Factor The supplies cost should be adjusted for changes in the base asphalt- 
concrete price. 

Equipment Factor Where it is necessary to purchase equipment, or have a subcontrac- 
tor perform the work, multiply the equipment operation cost obtained from the 
curve by the following applicable factor in order to obtain the total value of 
equipment expense for ownership and operation: 

Shifts per day 1 2 3 

Factor 1.44 1.33 1.29 

Subcontractor Factor If a subcontractor is used, to compensate for the subcontrac- 
tor's markup, multiply the costs obtained from the curves by the following 
factors: 

Labor factor (Fl) =1.5 

Supply factor (F s ) = 1.2 

Equipment operation factor (Fg) =1.2 



443 



Underground Mining— Capital Costs 



100,000 



c 



© 

Q. 
CO 

"o 



CO 
O 
O 



10,000 



1,000 



100 















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f\ 


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/ 


/ 














V< 


& 




















d?" 


















y *A 


v. 




, J. 005 
Y L = 117.710(X) 

, J. 005- 
Y s = 2.661. 382(X) 

• J. 005 

V,-— en ylTC^VN 






y <A 


ty 








s 




















T E 


3 <X 


< 3 








10 
WIDTH, meters 



100 



4.2.7.1.5. Access roads 
PAVING 



444 

4.2. UNDERGROUND MINING—CAPITAL COSTS 

4.2.7. INFRASTRUCTURE 

4.2.7.2. MAIN POWER LINES 



If power is to be obtained from a local power company, it is generally necessary to 
construct new facilities to connect the mine site to the existing power line net- 
work. This cost is usually borne by the mine company that desires to receive the 
service. For shorter distances and lower maximum power loads this may simply entail 
extending existing, medium voltage (13-24 kV) distribution lines. To satisfy great- 
er loads over longer distances, however, it is necessary to construct higher voltage 
(115 kV) transmission lines as well as substations dedicated to serve the mine sole- 
ly. The following tabulation will aid the evaluator in determining the appropriate- 
ness of the various options to his/her particular case. 



Main power lines 



Case 



Load 

Range(MVA) 1 



Maximum distribution line length, km 
24 kV 13 kV 



Substation costs 



1.. 

2. . 
3.. 
4.. 
5. . 



2- 4 

4- 8 

8-12 

12-20 

20 



105-52 
52-26 
26-18 
18-10, 
0' 



38-19 

19-10 

10- 6 

6- 4 







95,000 

289,000 

630,000 

630,000 



1 



MV 



A(million volt amperes) = lOOOkW; KV*A( thousand volt amperes) = kW 
Both MV*A and KV*A are commonly used in the power generation industry to 
designate power demand. 

^At greater than 20 MV'A it is advisable to have the main substation at the 
mine site, thus only transmission lines are considered. 



LINE COSTS: 

Transmission lines 
Distribution lines 



$59,000/kilometer 
$42,000/kilometer 



It is important to understand that there is an inverse relationship between MV*A 
and maximum distribution line distances. Thus, in case 2, at 24 kV'A, the first 
or lowest load figure (4 MVA) corresponds to the maximum distance figure (52 km) 
and the highest load to the lowest distance figure. 

It is also important to be aware of a few underlying assumptions regarding the five 
separate cases. Case 1 shows the power requirement range in which it is likely that 
existing distribution lines could supply the needed power. Thus there is no substa- 
tion expense. The second and third cases assume that minor and major modifications 
of an existing substation will be required, respectively. They also assume that new 
line needed will originate from that modified substation. For cases 4 and 5 the 
large power requirements necessitate the construction of a completely new, dedicated 
substation. This facility will thus have to be fed by extending an existing high- 
voltage transmission line. In the instance of case 4, the site of the substation is 
as near the existing transmission line network as practicable; for case 5 the sub- 
station is assumed to be at the mine site. 



445 

The costs contained in this section assume that the power company that will be sup- 
plying the power will design and construct the line. Principal costs categories in- 
cluded are right-of-way purchase and clearing, access road construction, line and 
substation construction, permitting, and preconst ruction design. 

The procedure for determining the system cost and requirements are as follows: 

1. Estimate the maximum power demand that the mine will require. If not avail- 
able, an estimate of this value may be made by the techniques contained in the 
appropriate mine and benef iciation electrical system sections contained in this 
report. It is recommended that, for estimating purposes, horsepower and kW (or 
KVA) be considered to be equivalent. Motor efficiencies as well as other system 
power losses generally account for much of the difference between the two units. 

2. Contact the probable power supplier to determine the "nearest useable 
source," or likeliest point from which power may be obtained. Depending upon pre- 
sent loading within the system this may or may not be the nearest transmission or 
distribution line. 

3. Calculate the actual maximum distribution line length on the basis of the 
projected load using the following equations: 

24 kV load — Maximum distribution line distance, in km = 210/ (P) 

13 kV load — Maximum distribution line distance, in km = 77/ (P) 
where P = power requirements, in MVA. 

4. Determine distribution line costs by multiplying the lesser of either the 
total length of line required or the maximum length of distribution line as calcu- 
lated in step 3, by line cost per kilometer ($42,000). 

5. Estimate the transmission line cost by multiplying the remaining length of 
line needed by transmission line cost per kilometer ($59,000). Note that for 
greater than 20 MVA it is recommended that transmission lines be installed for 
the entire distance. 

6. Based on MVA, determine a substation cost from the previous tabulation and 
add this to the line costs already determined. The combination of line and substa- 
tion costs is the total main power line cost. 

BASE CURVE 

System costs have been graphed for three different line distances over the load 
range (X) of 2 to 40 MVA. These curves are included to aid the manual user that 
is interested in a very preliminary cost and desires to avoid the procedure out- 
lined above for a more detailed cost determination. 

Freight charges from the east coast manufacturing plant to Denver, CO, for the 
major purchased equipment has been determined to be: 

Transformer, mt $7,500 

Oil breaker, 3 at 13 mt each $9,600 

All other equipment and materials are considered to be locally available in Denver, 
CO. 

The total capital cost is based on single curves having power loads (X), in 
megavalt anperes. The curves are valid for power loads of 2 to 40 MVA. 



446 

The capital cost derived from the curve is a combination of the following costs: 

Small Large 
(2 to (20 to 

20 MV-A) 40 MV'A) 

Construction labor cost 50% 47% 

Construction supply cost 50% 37% 

Purchased equipment cost - 16% 

The total 10 km main powerline capital cost is 

( Y C 10 KM LINE) = 207, 826. 608 (X) * 563 and is distributed as follows: 

(L) Construction Labor cost (Y L io KM-SMALl) = 103, 913.304(X) ' 563 
(S) Construction Supply cost (Y s 10 KM-SMALL) = 103, 913.304(X) * 563 

(L) Construction Labor cost (Y L 10 KM-LARGe) = 97,678.506(X) * 563 
(S) Construction Supply cost (Y s 10 KM-LARGE) = 76,895.844(X) 0, 563 
(E) Purchased Equipment cost (Y E 1( ) KM-LARGe) = 33,252.257 (X) 0,563 



The total 25km main powerline capital cost is 

< Y C 25 KM LINE) = 644,990.250(X) ' 370 and is distributed as follows: 

(L) Construction Labor cost (Y L 2 5 KM-SMALL) = 322,495.125(X) * 370 
(S) Construction Supply cost (Ys 25 KM-SMALL) = 322,495.125(X) ' 370 



(L) Construction Labor cost 



CY L 25 KM-LARGE) = 303,145. 418(X)0. 3 70 
(Y S 25 KM-LARGE) " 238,646.392 (X)?- 3 ™ 



( S ) Construction Supply cost 

(E) Purchased Equipment cost (Y E 25 KM-LARGe) = 103,198.440(X) * 370 

The total 50km main powerline capital cost is (Yq 50 KM LINE) = 
1,526, 363.387 (X)°' 27 ° and is distributed as follows: 

(L) Construction Labor cost (Y L 50 KM-SMALL) = 763,181.694(X) * 278 
(S) Construction Supply cost (Y s 50 KM-SMALL) = 763,181.694(X) 0,278 

(L) Construction Labor cost (Y L 50 KM-LARGe) = 717,390.792(X) ' 278 
(S) Construction Supply cost (Y s 50 KM-LARGe) = 564,754.453(X) ' 278 
(E) Purchased Equipment cost (Y E 50 KM-LARGe) = 244,218.142(X) 0,278 



447 



Underground Mining— Capital Costs 



10,000 



in 
o 
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10 km line .563 
Y c = 207.826.608(X) 

25 km line q 370 
Y c = 644.990.250(X) 

ftD km lin« 


























Y < 


: = 1.5 
2 


26.363.3 
< X < - 


87(X 
*0 


U.2 
) 


/8 



10 
POWER LOAD, megavolt amperes 

4.2.7.2. Main power lines 



100 



448 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.7. INFRASTRUCTURE 

4.2.7.3. TOWNSITE 



The following housing costs are for a typical average quality park based on using 
trailers or manufactured 'mobile home 1 housing containing between 150 and 200 units. 
Costs are quoted per individual housing unit. Costs are factored by using the Bu- 
reau of Labor Statistics Industrial Materials Cost Index. Site costs do not include 
land site acquisition, construction of utility trunk lines to the site, or a waste- 
water treatment plant. Wastewater disposal uses a septic tank and drain field; how- 
ever, transportation and setup costs to areas within 100 miles of Denver, CO, are 
included . 

Typical average site costs for family or bachelor unit 

Bachelor 

Site preparation (typical avg . area 410 sq m) ] $1,050 $ 320 

Streets (7.9- to 9.8-m wide, 7.6-cm asphalt or 7.5-cm gravel 

edged or curbed) 

Patios and walks 

Septic tank, includes drain field 

Water, connected to unit 

Gas , low pressure connected 

Electrical, 80- to 150-A connected service to each unit , 

Office, recreation, laundry 

Total 

The following adjustment factors should be applied to the total typical average site 
cost where either quality or quantity differs. 

Site preparation adjustment multipliers to total typical average site cost are 
as follows : 




Quality 
description 

Low (300 m^/space) 



Average (410 m^/space) 



Good (520 m 2 /space) 



Quality 
factor 

0.70 



1.00 



1.30 



Quantity 


Factor 


40- 80 


1.07 


80-125 


1.00 


150-250 


.92 


50-125 


1.10 


150-200 


1.00 


250-300 


.95 


50-150 


1.10 


175-200 


1.00 


250-350 


.97 



449 

In addition, the following accessories may also be required: 

Skirting at base of trailer $620.00 

Landing and steps 360.00 

Canopies over landings 550.00 

Air conditioning — using existing heater 840.00 

HOUSING UNITS 

Family Units — With living, dining, kitchen, bath, and sleeping facilities for two 
adults and two to four children. Cost is for typical average quality. 

Single-wide (4.27 by 19.50 m) $15,400 

Double-wide (7.31 by 14.63 m) 26,400 

Quality adjustments to the single and double-wide basic costs are made by multi- 
plying the above housing unit average quality costs by the following factors: 



Low quality: 






1.12 




1.16 


Average quality: 






0.90 




0.87 


Excellent quality: 






1.25 




1.34 



Quantity adjustments — For quantities greater than 10 units, decrease overall 
costs by 10 percent. 

Snowload adjustment — For areas of heavy snowfall, increase basic unit costs 5 
percent for increased roof support design. 

Bachelor Units — Consisting of single-person motel-style rooms with a kitchen and 
dining room. Rooms share a centrally located restroom and shower facility. 
Cost is for typical average quality. 

Bachelor unit $15,000 

Number of persons adjustment — Per person cost is based on housing 400 personnel, 
Lodging capital costs for greater than 500 people, decrease costs by 10 percent. 
Increase costs by 15 percent for less than 300 and 20 percent for less than 200. 

PRIMARY UTILITIES 

Electrical, cost per linear meter: 

Main overhead electric powerlines $26.32 

Lateral overhead lines. $8.25 

Water, cost per linear meter: 

Main, 15.24 cm plastic (add or deduct $5.75 

per 2.54 cm diam) $35.80 

Lateral, 2.54 cm $17.22 



450 

4.2. UNDERGROUND MINING—CAPITAL COSTS 

4.2.7. INFRASTRUCTURE 

4.2.7.4.1. WASTE WATER TREATMENT 
CLARIFICATION 

Clarification capital cost is for the acquisition and installation of equipment for 
water clarification and softening by precipitation and/or coagulation. The all 
metal solids-contact clarifier combines into one operation — quick mixing, floccula- 
tion, clarification, and sludge thickening. The unit will selectively or simultan- 
eously remove turbidity, color, organic matter, manganese, iron, hardness, alkali- 
nity, taste, and odor. The cost curve is based on clarifiers ranging in diameter 
from 2.74 to 45.72 m (cross-sectional area ranging from 5.9 to 1,642 m^). 

BASE CURVES 

Total cost is based on a single cost curve having a tank diameter of (X) in meters. 
The curve includes all costs associated with acquisition and installation of con- 
crete pad, clarifier structure, and control-monitor equipment for sludge level and 
sludge density control. 

The total clarification capital cost derived from the curve is a combination of the 
following costs: 

Construction labor cost 19% 

Construction material cost.... 5% 
Purchased equipment cost 76% 

The total clarification capital cost is (Y c ) = 15,631.070(X) 0,991 and is distri- 
buted as follows: 



(L) Construction Labor Cost (Y L ) = 2,969. 910(X)°* 991 
(S) Construction Supply Cost (Y s ) = 781. 550(X) * 991 
(E) Purchased Equipment Cost (Y E ) = 11,879. 610(X) ' 991 



NOTE:- Sizing of clarifier is based on one principal parameter — rise rate — the ver- 
tical velocity of the stream through the clarifier. If the diameter or 
cross-sectional area of the clarifier is unknown, and the feed flow rate is 
known and the rise rate is assumed to be 0.015 m/min, then the diameter (D), 
or equivalent cross-sectional area, of the clarifier can be estimated with 
the equation: 

Clarifier diameter (D) = 1.128[ (Q)/(R) ]°« 500 

where R = rise rate, in meters per minute, 

and Q = design flow rate, in cubic meters per minute. 



451 



1.000 



Underground Mining— Capital Costs 



n 

o 

"o 
-o 



to 

§ 100 
to 

O 



in 
O 
O 



10 



































/ 


































7 












/ 


/ 


/ 














/ 


































































0.991 
Y c = 15,631. 070(X) 

2.74 < X < 45.72 












I II! 



10 
TANK DIAMETER, meters 



100 



4.2.7.4.1. Wastewater treatment 
CLARIFICATION 



452 

4.2. UNDERGROUND MINING— CAPITAL COSTS 

4.2.7. INFRASTRUCTURE 

4.2.7.4.2. WASTEWATER TREATMENT 
NEUTRALIZATION 

The Environmental Protection Agency's publication EPA-600/2-82-00/d "Treatability 
Manual, Vol. IV, Cost Estimating," April 1983, was the source of cost development. 
One is referred to this manual if further detail in neutralization costs is needed. 
Additionally, other waste water treatment methods are costed in this EPA manual. 

The capital cost curves cover neutralization of waste water effluent (out-of-pipe) 
when required. The basic design variable is waste water flow. Applicability of the 
curves are for effluent to be neutralized that ranges in volume from 0.001 to 876 
1/s (22.8 to 20 million gal/d). It is assumed that flow equalization is provided by 
a tailings pond. The costs apply to the neutralization of either acidic or basic 
waste water streams originating from mine, mill, or combined mine and mill after it 
flows out-of-pipe from the central impoundment pond. In most mining operations fur- 
ther waste water treatment costs are not required. The system consists of chemical 
addition and two-stage neutralization tanks. It is assumed that pH and suspended- 
dissolved solid content of influent to the system will be unknown at this level of 
costing. Basis of design uses a standard dosage of 100 mg/1 lime and 100 mg/1 acid 
to achieve a pH of 7.0 over a pH range of 6.5 to 8.0. 

BASE CURVES 

Total costs are described by two sets of cost curves based on daily average waste 
water flow rate (X) in L/s. The curves include all costs associated with the con- 
struction of the treatment facility including mixing tank, attenuation tank, chemi- 
cal storage, agitators, piping, electrical, and instrumentation. These costs are 
distributed as follows: 

Construction labor cost 22% 

Construction supply cost 13% 

Purchased equipment cost 65% 

For waste water effluent rates between 0.001 to 8.76 L/s, the capital cost is 
(Y C 0.001-8.76 L/s> = 123,144.490(X) * 094 and is distributed as follows: 

(L) Construction Labor Cost (Y L 0.001-8.76 L/s) = 27,091. 780(X) * 094 

(S) Construction Supply Cost (Y s 0.001-8.76 L/s) = 16,008. 780(X) ' 094 

(E) Purchased Equipment Cost (Y E 0.001-8.76 L/s) = 80,043.930(X) - 094 

For waste water effluent rates between 8.76 to 876 L/s, the capital cost is 
(Y c 8.76-876 L/s) = 26, 346.39 (X)°- 562 and is distributed as follows: 

(L) Construction Labor Cost (Y L 8.76-876 L/s) = 5, 796. 21 (X) ' 562 
(S) Construction Supply Cost (Y s 8.76-876 L/s) = 3,425.03(X)°* 562 
(E) Purchased Equipment Cost (Y E 8.76-876 L/s) - 17,125.15(X) 0# 562 



453 



Underground Mining— Capital Costs 



1,000 



to 
"o 



to 

c 
o 
to 

o 

JO 



o 
u 



100 



10 

































































































































































































































1 




































j 






































i 






































1 
! 

i i 


, v o.o94 y 

Y C =123,144.490(X) i 
0.001 <X< 8.76 






















1 ill! 1 ! ! " 



0.001 



0.01 0.1 1 

FLOW RATE, liters per second 

4.2.7.4.2.a Wastewater treatment 
NEUTRALIZATION 



10 



•4J-4 



Underground Mining— Capital Costs 



10,000 



n 

jo 

o 1,000 
■o 



W 

•o 

c 
o 
n 

O 



CO 

o 

o 



100 



10 













































































































































,s' 


























h^ 


^ 


























































































































• 


f 






































































































1 


, . 0.562 
r= 26,346.39(X) 





















8 


.76 < 


<< 8^ 


'6 


i , 



10 100 

FLOW RATE, liters per second 

4.2.7. 4.2.b Wastewater treatment 
NEUTRALIZATION 



1,000 



455 
4.2. UNDERGROUND MINING— CAPITAL COSTS 
4.2.8. ENGINEERING AND CONSTRUCTION MANAGEMENT FEES 

Fees vary according to access, location, topography, shape of ore body, type of 
mineral extracted, and type of entry to the mine. The curves are based on percent- 
age of net constructed cost. The approximate correlations between design engineer- 
ing and construction costs are illustrated in these curves. The curves for design 
engineering, construction management, and total engineering and construction manage- 
ment are based on data supplied through interviews in 1983 and 1984 with several 
major mining engineering and construction firms. 

The net construction cost is the sum of the group cost for sections 4.2.1. (Prepro- 
duction Development), 4.2.3. (Mining Equipment), 4.2.4. (Trans- portation), 4.2.5. 
(Mine Plant General Operations), 4.2.7. (Infrastructure). 

BASE CURVES 

Generally, each fee varies from 4% to 6% of the net construction cost. Actual cost 
determinations can be made using the following formulas, where (X) is the total net 
construction cost: 

The equations for each of the individual curves are as follows: 

The construction management fee cost is (Y c ) = 0.688(X) 0,8 ^ 8 

The design and engineering fee cost is (Y E ) = 0.489 (X)0* 8 70 

The total design, engineering, and construction management fee cost is 
(Y T ) = 0.729(X) ' 884 

The total engineering and construction fee curve is based on a single firm perform- 
ing both tasks. The other two curves are based on different firms performing each 
task. 

Fees will vary by approximately 15% depending on the economic climate and level of 
activity within the mining industry when engineering and construction services are 
required. 



456 



Underground Mining— Capital Costs 



10,000 



D 



=5 1.000 



W 

•a 

c 

D 
W 

3 
O 



CO 

UJ 



100 



10 













1 


«> 






/ 






















,/ 


/ 






















/ 


' 




^ 
















£ 


















, A 


£ 





















^ ^ 
>-^^ 


9 *'_jr^*y. 


^ 


















<^ ,^^ 


&> 


















. ._ 




^ 




















>> 




















<F M 






Engineering management fees 

Y E = 0.489(X) a87 ° 
Construction management fees ■ 

, ,0.848 
Y c = 0.688(X) 

Engineering and construction 

management fees 

on/vS 0.884 


1 r# 






































































Y T =C 
4.70C 


1. 1 4 

).0( 


DO 


<X< 109,000,000 



1,000 10,000 100,000 1,000,000 

NET CONSTRUCTION COST, thousands of dollars 

4.2.8. Engineering and construction management fees 



457 
4.2. UNDERGROUND MINING—CAPITAL COSTS 
4.2.9. WORKING CAPITAL 

Working capital is the cash required to sustain a mining and /or milling operation 
between mining the ore and receiving revenue from its sale. It is the capital re- 
quired to meet out of pocket expenses, such as payroll, equipment operation, utili- 
ties, and administrative operating costs. In aggregate, these are the total operat- 
ing costs for the operation during the designated time period. Because this time 
lag persists; that is, monies received in payment for September's production are 
reinvested in material and supplies to produce ore in November or December, a con- 
tinuing account must be maintained as long as the operation is active. 

A reasonable estimate of this lag period is dependent upon the type of operation 
under study. For operations that must send concentrates to a smelter, working capi- 
tal is estimated as 10 weeks of operating, administrative and transportation costs. 
This estimate includes 2 weeks for transportation by rail to the smelter as well as 
2 months for the smelter to make payment. By far the majority of precious and non- 
ferrous metal producers can be thus classified. 

Less working capital, 6 weeks of operating and administrative costs, is required for 
mines that market their product directly or that have vertically integrated pro- 
cessing facilities (i.e., same company owns smelter and/or refinery or company sells 
the end product). 

Adjustments should be considered if the transportation time to the smelter or 
smelter settlement time varies from assumed values. Adjustments should also be made 
to mine working capital if large mined ore stockpiles are maintained between the 
mining and milling stages, as this also advances the final settlement date. 

For aiines with mills that do not ship concentrates on a regular schedule because of 
remoteness and /or do not operate year-round, working capital should be increased 
appropriately. 



458 

5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.2. CORE DRILLING 

Core drilling requirements vary considerably from mine to mine. For steeply dipping 
veins that require continuing development, as mining progresses downward, the amount 
drilled is relatively high; for near surface, flat-lying ore bodies for which grade 
and ore extent are easily determined drilling requirements will be minimal following 
initial exploration and development. For small to medium sized vein mines, 500 to 
2,000 mtpd, typical drilling requirements range from 1,000 to 5,000 m/yr; for large 
bulk operations, 5,000 to 50,000 mtpd, such as block caving mines, 5,000 m/yr and 
greater are more typical. The evaluator should determine the approximate value 
appplicable in the instance under study. 

Surface rotary or diamond drills may also used for assay control and ore body defi- 
nition. This is especially true if the ore body is relatively flat lying and near 
surface. If the evaluator feels that this is characteristic of the case under 
study, the appropriate surface mining section should be consulted for pertinent 
costs. 

BASE CURVES 

The total cost per day is the sum of three separate cost curves (labor, supplies, 
and equipment operation) based on a drilling rate (X), in meters per day, times the 
cost per meter. Costs are based on an operating schedule of one shift per day. 

The core drilling costs in this section are predicated upon utilizing a diamond 
drill capable of penetrating to 300 meters, an AWG bit (hole size is 4.80 cm or 1.89 
in), and an average penetration rate of 12.2 m per shift. All costs are per meter 
drilled and considers move time and downtime. Total costs for an in-house drilling 
program can be estimated as $44.75 per meter. 

(L) Labor Cost (Y L ) = (fc21.38/m) (X) 

The operating labor costs are distributed as follows: 

Direct labor 97% 

Maintenance labor 3% 

The operating labor costs are based on straight days pay, drilling bonuses have 
been ignored, and consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Drillers 50% $18.11 

Drillers helper 50% 13.66 

Average wage for labor is $15.89 per worker-hour (including burden and average 
shift differential). 



459 

(S) Supply Cost (Y S ) = (fc20.67/m)(X) 

The supply cost consists of 70% drill bits, drill rods, and core barrel assembly 
parts, 7% electrical power, and 23% miscellaneous items. 

(E) Equipment Cost (Y E ) = ($2.70/m)(X) 

The equipment operating cost consists of 48% for parts, 13% for lubrication, and 
39% for miscellaneous costs for drill and pump equipment. 

ADJUSTMENT FACTORS 

Cutout Costs In many instances it is necessary to blast cutouts for a drilling 
station to ensure that the drilling crew does not impede traffic along the 
drifts. This is typically accomplished by a minimum of two rounds in either 
rib. This additional charge should be taken into consideration when determining 
the total cost of the drilling program. For appropriate costs refer to the 
drifting section that would apply. 

Contractor Factor It has become standard within the industry for the drilling to be 
done by contractor. To adjust for this eventuality, the evaluator should in- 
crease the labor cost by 38%. Equipment operation and supply costs will not be 
affected directly, however; all three categories (equipment operation, supplies, 
and adjusted labor) should be increased by an additional 35% for indirect field, 
local, and national overhead, and contractor profit charges. Multiply the costs 
obtained from the curves by the following factors: 

Labor factor (F L ) = 1.86 

Supply factor (Fs> = 1.35 

Equipment operation factor (Fj?) = 1.35 



460 

5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.3. SINKING SHAFTS 

The total cost per meter is the sum of three separate cost curves (labor, supplies, 
and equipment operation) based on a face area (X), in square meters. The curves are 
valid for areas between 4 and 40 m^, with average advances of 1.9 m/d in the smal- 
ler shafts and 1.3 m/d overall in the larger shafts, operating three shifts per day. 
The curves are based on circular shafts with concrete lining. Total daily cost is 
the cost per meter advance times the daily advance rate. 

Services installed in the shaft include guides, manways , air, water and vent lines, 
and signal lines. Sinking is considered to be done with a sinking headframe. Costs 
for permanent hoisting facilities are included in section 4.2.3.1. (Hoisting 
Facilities). 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 615. 595(X) ' 542 

The operating labor costs are distributed as follows: 

Direct labor 84% 

Maintenance labor 16% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Miners 34% $18.44 

Helpers 22% 15.09 

Support 44% 17.04 

Average wage for labor is $16.35 per worker-hour (including burden and average 
shift differential) 

(S) Supply Operating Cost (Y s ) = 182.051(X)°« 558 

The supply cost consists of 21% explosives, 34% steel items, 38% miscellaneous 
items, 6% electricity, and 1% timber. Supplies include drill bits and steel, 
powder, caps, timber, hanging rods, vent line, compressed air pipe, pump line, 
water line, concrete line, blasting lines, and bell cord. 

(E) Equipment Operating Cost (Y E ) = 681 .476 (X) ' 407 

Tne equipment operating cost consist of 88% for repair parts, 7% for fuel and 
lubrication, and 5% for tires (tires used on topside crane and loader servicing 
the shaft sinking). The equipment operating curve covers daily maintenance and 
repair, repair parts, and lubrication for drills, fans, muckers, and other eq- 
uipment used to sink the shaft. 



461 

ADJUSTMENT FACTORS 

Rock Hardness Factor Shaft sinking productivity is directly related to rock hard- 
ness. If the compressive strength of the rock is known, or an estimate can be 
made from table A-l in the appendix, multiply the costs obtained from the curves 
by the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) - 093 

Supply factor (F s ) = 0.579(C) ' 054 

Equipment operation factor (F E ) = 0.715(C) 0,033 

where: C = compressive rock strength, in pounds per square inch. 

Timber Factor If the shaft is to be lagged with timber instead of lined with con- 
crete, multiply the costs obtained from the curves by the following factor: 

Timber factor (F T ) = 0.482(X) * 077 . 
where: X = face area, in square meters. 

Assume a timber-lined shaft would have a rectangular configuration. 



452 



Underground Mining— Operating Costs 



10,000 



a 
© 



© 

© 
£ 

© 

a 

tn 

\- 
o 

o 

13 



CO 

o 
o 



1,000 



100 







































































V 


&*^ 


r?°° 














to* 


^ 


£ ^ 


o v 
















f\ 


i^- 


















y,-m— 






























542 
Y L = 615.595(X) " 

Y S = 1 82.051 (X) ' 558 
n ACM 






















YE= 
4 


681.4761 
<X< 4C 


:x) 

) 

i 1 





=r. 



10 
SHAFT AREA, square meters 

5.2.1.3. Sinking shafts 



100 



463 



5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.4.1. DRIFT DEVELOPMENT 

SMALL DRIFTS FOR RAIL HAULAGE 



Costs derived from these curves apply to drifts with average rock hardness, abra- 
siveness and standing characteristics are assumed. Advance rates range from 2 to 3 
m/d, with productivity averaging 0.39 m per worker-shift. It has been assumed that 
10% of the drift will require support consisting of 6-ft expansion shell rock bolts 
on a regular pattern. Drilling is accomplished with 3.0-in jacklegs. 

The drifting cycle includes drilling, loading, blasting, venting, mucking, scaling, 
track laying, lunch, and travel. Muck is loaded into 2.0- or 3.0-yd^ development 
cars using an overshot mucker. Blasted material is hauled an average of 200 m to 
either a fill point or reconveyance point (ore pass, hoisting station, etc.). The 
expense of additional handling must be added through the hoisting and /or haulage 
curves. 

Total cost per meter is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a face area (X), in square meters. The curves are 
valid for areas between 3 and 12 m^, operating two shifts per day. The daily 
operating cost is the product of meters of drift driven per day and the total cost 
per meter. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 79.926(X)°* 764 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



95% 
5% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(3 to (6 to per hour 

6 m 2 ) 12 m 2 ) (base rate) 

Miners 90% 83% $18.31 

Helpers - 11% 13.86 

Motor operators 10% 6% 16.09 

Average wage for labor is $17.56 per worker-hour (including burden and average 
shift differential). 

S) Supply Operating Cost (Y s ) = 73.283(X) ' 602 

The supply cost consists of 44% steel items, 23% explosives, 10% drill bits and 
steel, 10% ventilation materials, 5% material waste, 4% timber, 3% ballast, and 
1% electricity. Supplies include drill bits and steel, powder, caps, 
primacord, rockbolts, water pipe, compressed air pipe, electricity, steel rail, 
ties, ballast, ventilation tubing, and material waste. 



464 

The equipment operating cost consists of 73% for maintenance and overhaul parts, 
11% for fuel, 8% for ground engaging components, and 8% for lubrication. The 
equipment curve covers daily maintenance and overhaul parts, fuel, lubrication, 
and ground engaging components. Equipment used in drifting includes jacklegs, 
overshot muckers, ore cars, jackhammers, locomotives, and auxiliary fans. 

ADJUSTMENT FACTORS 

Rock Hardness Factor Drifting productivity is directly related to rock hardness. 

If the compressive strength of the rock is known, or an estimate can be made from 

table A-l in the appendix, multiply the costs obtained from the curves by the 

following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) ' 093 

Supply factor (F s ) = 0.579(C) * 054 

Equipment operation factor (F E ) = 0.715(C) 0,033 

where: C = compressive rock strength, in pounds per square inch. 

Rock Bolt Factor For regular bolting of the entire drift, (1.2 bolts per square 
meter), multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) =1.08 

Supply factor (Fs) = 1.10 

Equipment operation factor (Fg) = 1.16 

Timbering Factor If the drifts require timbering, multiply the costs obtained from 
the curves by the following factors: 

Labor factor (F L ) = 1.30 

Supply factor (F s ) = 1.39 

These factors will account for standard cap and post timbering plus lagging for 
the entire length of the drift. 



465 



Underground Mining— Operating Costs 



1,000 



c 

ID 



r 100 



L. 

T3 



O 

E 

a. 
m 

L. 

_o 

"o 
-a 



if) 
O 
O 



10 

















































3<> 


































*r 




















































































o9? 


o* 


oo. 












1^2 


^1 


























, ,0.764 - 
Y L = 79.926(X) 

0.602 
Y s = 73.283(X) 

Y E = 4.869(X)°- 647 
3<X< 12 




















































I III 



10 



100 



FACE AREA, square meters 



5.2.1.4.1. Drift development 

SMALL DRIFTS FOR RAIL HAULAGE 



466 

5.2. UNDERGROUND MINING—OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.4.2. DRIFT DEVELOPMENT 

SMALL DRIFTS FOR RUBBER-TIRED HAULAGE 



Costs derived from these curves apply to drifts with average rock hardness, abra- 
siveness and standing characteristics are assumed. Advance rates range from 2.4 to 
3.6 m/d, with productivity averaging 0.49 m per worker-shift. It has been assumed 
that 10% of the drift will require support consisting of 6-ft expansion shell rock 
bolts on a regular pattern. Drilling is accomplished with 3.0-in jacklegs. 

The drifting cycle includes drilling, loading, blasting, venting, mucking, scaling, 
lunch, and travel. Mucking is accomplished using an LHD unit. Blasted material is 
hauled an average of 200 m to either a fill point or reconveyance point (ore pass, 
hoisting station, etc.). The expense of additional handling must be added through 
the hoisting and /or haulage curves. 

Total cost per meter is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a face area (X), in square meters. The curves are 
valid for areas between 4 and 12 m 2 , operating two shifts per day. Daily operat- 
ing cost is the product of meters of drift driven per day and the total cost per 
meter. 



BASE CURVES 

(L) Labor Operating Cost (Y L ) = 72.72KX) * 685 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



96% 
4% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(4 to (8 to per hour 

8 m 2 ) 12 m 2 ) (base rate) 

Miners 84% 83% $18.31 

Helpers 16% 11% 13.86 

LHD operators - 6% 16. 53 

Average wage for labor is $17.30 per worker -hour (including burden and average 
shift differential). 

(S) Supply Operating Cost (Y s ) = 43.313(X) 0,687 

The supply cost consists of 33% steel items, 33% explosives, 15% ventilation 
materials, 13% drill bits and steel, 5% material waste, and 1% electricity. 
Supplies include drill bits and steel, powder, caps, primacord, rockbolts, water 
pipe, compressed air pipe, electricity, ventilation tubing, and material waste. 



467 

(E) Equipment Operating Cost (Y E ) - 1.360(X) 1,188 

The equipment operating cost consists of 64% for maintenance and overhaul parts, 
18% for tires, 13% for fuel, and 5% for lubrication. The equipment curve covers 
daily maintenance and overhaul parts, fuel, lubrication, and tires. Equipment 
used in drifting includes jacklegs, LHD's, auxiliary fans, and scissor lifts. 

ADJUSTMENT FACTORS 

Rock Hardness Factor Drifting productivity is directly related to rock hardness. 
If the compressive strength of the rock is known, or an estimate can be made 
from table A-l in the appendix, multiply the costs obtained from the curves by 
the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) * 093 

Supply factor (F s ) = 0.579(C) ' 054 

Equipment operation factor (F E ) = 0.715(C) 0,033 

where: C = compressive rock strength, in pounds per square inch. 

Rock Bolt Factor For regular bolting of the entire drift, (1.2 bolts per square 
meter), multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) = 1.10 

Supply factor (Fg) = 1.15 

Equipment operation factor (Fg) = 1.11 



468 



Underground Mining— Operating Costs 



1,000 



c 

© 



r 100 

T3 

L. 

0) 

I-' 
(0 

E 



a. 

L. 
"5 



C/5 
O 
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10 



































































V 




jS,^i 
















% 


















































































o B Vl 


# 

































<:# 








Y L = 72.721(X)°- 685 

Y s = 43.31 3(X) 

Yc= 1.360M 1 ' 188 


















































t 



4 <X 

i — i 


< 12 

■ — — i 


1 


i — ' 



10 
FACE AREA, square meters 



100 



5.2.1.4.2. Drift development 
SMALL DRIFTS FOR RUBBER-TIRED HAULAGE 



469 



5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.4.3. DRIFT DEVELOPMENT 

MEDIUM DRIFTS FOR RUBBER-TIRED HAULAGE 



Costs derived from these curves apply to drifts with face areas between 6 and 20 
m 2 . Average rock hardness, abrasiveness, and standing characteristics are 
assumed. Advance rates range from 5.4 to 6.0 m/d, with productivity averaging 0.71 
m per worker-shift. It has been assumed that 10% of the drift will require support 
consisting of 6-ft expansion shell rock bolts on a regular pattern. Drilling is 
accomplished with two- or three-boom jumbos. 

The drifting cycle includes drilling, loading, blasting, venting, mucking, scaling, 
lunch, and travel. Mucking is accomplished using an LHD unit. Blasted material is 
hauled an average of 200 m to either a fill point or reconveyance point (ore pass, 
hoisting station, etc.). The expense of additional handling must be added through 
the hoisting and /or haulage curves. 

Total cost per meter is the sum of three separate cost curves (labor, supplies, 
and equipment operation) based on a face area (X), in square meters. The curves 
are valid for areas between 6 and 20 m 2 , operating two shifts per day. Daily 
operating cost is the product of meters of drift driven per day and the total cost 
per meter. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) - 86.960(X) * 349 

The operating labor costs are distributed as follows: 

Direct labor 93% 

Maintenance labor 7% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(6 to (13 to per hour 

13 m 2 ) 20 m 2 ) (base rate) 

Miners 69% 67% $18.31 

Helpers 21% 20% 13.86 

LHD operators 10% 7% 16.53 

Utility workers - 6% 16.98 

The average wage for labor is $17.21 per worker-hour (including burden and 

average shift differential). 

(S) Supply Operating Cost (Y s ) = 27.390(X) * 855 

The supply cost consists of 53% steel items, 29% explosives, 12% ventilation 
materials, 5% material waste, and 1% electricity. Supplies include drill bits 
and steel, powder, caps, prima- cord, rockbolts, water pipe, compressed air 

pipe, electricity, ventilation 
tubing, and material waste. 



470 

(E) Equipment Operating Cost (Y E ) = 4.497(X) ' 684 

The equipment operating cost consists of 57% for maintenance and overhaul parts, 
24% for tires, 14% for fuel, and 5% for lubrication. The equipment curve covers 
daily maintenance and overhaul parts, fuel, lubrication, and tires. Equipment 
used in drifting includes jumbo-mounted drifters, LHD's, jacklegs, auxiliary 
fans, and scissor lifts. 

ADJUSTMENT FACTORS 

Rock Hardness Factor Drifting productivity is directly related to rock hardness. 
If the compressive strength of the rock is known, or an estimate can be made 
from table A-l, in the appendix, multiply the costs obtained from the curves by 
the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) - 0.388(C) ' 093 

Supply factor (F s ) = 0.579(C) ' 054 

Equipment operation factor (F E ) = 0.715(C) ' 033 

where: C ■ compressive rock strength, in pounds per square inch 

Rockbolt Factor For regular bolting of the entire drift, (1.2 bolts per square 
meter), multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) =1.08 

Supply factor (Fg) ■ 1.14 

Equipment operation factor (F E ) = 1.42 

Shotcrete Factor If the drift is to be shotcreted, multiply the costs obtained from 
the curves by the following factors: 

Labor factor (F L ) = 1.03 

Supply factor (F$) = 1.24 

Equipment operation factor (F E ) = 1.15 

Concrete Factor If the drift is to be lined with concrete, multiply the costs 
obtained from the curves by the following factors: 

Labor factor (F L ) = 1.64 

Supply factor (F s ) = 1.72 

Equipment operation factor (Fp) = 2.26 



471 

Steel Set Factor If steel sets are to be used, multiply the costs obtained 
from the curves by the following factors: 

Labor factor (F L ) = 1.37 

Supply factor (Fg) ■ 2.47 

Equipment operation factor (Fg) = 1.19 



472 



Underground Mining— Operating Costs 



1,000 



c 
© 



© 

<D 

E 

v_ 
<D 

a. 
m 

*o 
•a 



(/) 
o 

a 



100 



10 



I I ! 














, 0.349 
Y L = 86.960(X) 

_ Y s =27.390(X) a855 
-Y E= 4.497(X)°' 684 
6 <X< 20 
























































■^V-OO ' i 




























































..1 


"V 














;>*?? 


£ 


r^ 














*1 


fy 















10 
FACE AREA, square meters 



100 



5.2.1.4.3. Drift development 
MEDIUM DRIFTS FOR RUBBER-TIRED HAULAGE 



473 



5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.4.4. DRIFT DEVELOPMENT 

LARGE DRIFTS FOR RAIL HAULAGE 



Costs derived from these curves apply to drifts with face areas between 8.0 and 25.0 
m 2 . Average rock hardness, abrasiveness , and standing characteristics are 
assumed. Advance rates range from 5.0 to 6.8 m/d, with productivity averaging 0.57 
m per worker-shift. It has been assumed that 10% of the drift will require support 
consisting of 6-ft expansion shell rockbolts on a regular pattern. Drilling is 
accomplished with 3.0-in jacklegs . 

The drifting cycle includes drilling, loading, blasting, venting, mucking, scaling, 
track laying, lunch, and travel. Muck is loaded into 6.0- to 10.0-yd 3 development 
cars using an overshot mucker. Blasted material is hauled an average of 200 m to 
either a fill point or reconveyance point (ore pass, hoisting station, etc.). The 
expense of additional handling must be added through the hoisting and /or haulage 
curves. 

Total cost per meter is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a face area (X), in square meters. The curves are 
valid for areas between 8 and 25 m 2 , operating two shifts per day. Daily 
operating cost is the product of meters of drift driven per day and the total cost 
per meter. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 27. 037 (X) ' 857 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



90% 
10% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(8 to (16 to per hour 

16 m 2 ) 25 m 2 ) (base rate) 

Miners 73% 68% $18.31 

Helpers 12% 17% 13.86 

Utility workers 8% - 16.98 

Track workers - 9% 16.53 

Motor operators 7% 6% 16.09 

The average wage for labor is $17.34 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 63.689 (X) * 693 

The supply cost consists of 53% steel items, 19% explosives, 10% drill bits and 

steel, 8% ventilation materials, 5% material waste, 3% timber, 1% ballast, and 



474 

1% electricity. Supplies include drill bits and steel, powder, caps, primacord, 
rockbolts, water pipe, compressed air pipe, electricity, steel rail, ties, 
ballast, ventilation tubing, and material waste. 

(E) Equipment Operating Cost (Y E ) = 1.437 (X) 1 * 056 

The equipment operating cost consists of 83% for maintenance and overhaul parts, 
9% for ground engaging components, 4% for fuel, and 4 percent for lubrication. 
The equipment curve covers daily maintenance and overhaul parts, fuel, lubrica- 
tion, and ground engaging components. Equipment used in drifting includes 
jumbos, overshot muckers, ore cars, jacklegs, jackhammers, locomotives, scissor 
lifts, rail tampers, roof bolters, and auxiliary fans. 

ADJUSTMENT FACTORS 

Rock Hardness Factor Drifting productivity is directly related to rock hardness. 
If the compressive strength of the rock is known, or an estimate can be made 
from table A-l in the appendix, multiply the costs obtained from the curves by 
the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) * 093 

Supply factor (F s ) = 0.579(C) * 054 

Equipment operation factor (F E ) = 0.715(C) * 033 

where: C = compressive rock strength, in pounds per square inch. 

Rockbolt Factor For regular bolting of the entire drift, (1.2 bolts per square 
meter), multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) = 1.02 

Supply factor (F s ) = 1.09 

Equipment operation factor (Fg) = 1.23 

Dual Track Factor To account for two sets of tracks in the drift (drifts greater 
than 16 m^ only) multiply the costs obtained from the curves by the following 
factors: 

Labor factor (F L ) = 1.11 

Supply factor (Fg) = 1.26 

Equipment operation factor (Fj?) = 1.17 

Shotcrete Factor If the drift is to be shotcreted, multiply the costs obtained from 
the curves by the following factors: 

Labor factor (F L ) =1.02 

Supply factor (F s ) = 1.16 

Equipment operation factor (Fg^ = 1*15 



475 



Concrete Factor If the drift is to be lined with concrete, multiply the costs 
obtained from the curves by the following factors: 

Labor factor (F L ) - 1.52 

Supply factor (Fg) = 1.81 

Equipment operation factor (Fg) = 2.14 

Steel Set Factor If steel sets are to be used, multiply the costs obtained 
from the curves by the following factors: 

Labor factor (F L ) = 1.29 

Supply factor (F s ) = 1.95 

Equipment operation factor (Fg) = 1.10 



476 



Underground Mining— Operating Costs 



1.000 



o> 

c 





E 100 

i_ 
o 
a. 

w 

"o 
■a 



O 
a 



10 



1 1 1 
















" Y L = 27.037(X)°- 857 

, x 0.693 
Y s = 63.689(X) 

, % 1.056 
Y E = 1.437(X) 

8 <X< 25 




















i 


U^- 


y 








y- 


















































































if 




















V 














/ < 


/ 











10 
FACE AREA, square meters 



100 



5.2.1.4.4. Drift development 
LARGE DRIFTS FOR RAIL HAULAGE 



477 



5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.4.5. DRIFT DEVELOPMENT 

LARGE DRIFTS FOR RUBBER-TIRED HAULAGE 



Costs derived from these curves apply to drifts with assumed average rock hardness, 
abrasiveness, and standing characteristics. Advance rates range from 2.3 to 2.7 
m/d, with productivity averaging 0.55 m per worker-shift. It has been assumed that 
10% of the drift will require support consisting of 6-ft expansion shell rockbolts 
on a regular pattern. Drilling is accomplished with two- or three-boom jumbos. 

The drifting cycle includes drilling, loading, blasting, venting, mucking, scaling, 
lunch, and travel. Mucking is accomplished using front-end loaders and trucks. 
Blasted material is hauled an average of 200 m to either a fill point or reconvey- 
ance point (ore pass, hoisting station, etc.). The expense of additional handling 
must be added through the hoisting and /or haulage curves. 

Total cost per meter is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a face area (X), in square meters. The curves are 
valid for areas between 20 and 50 m 2 , operating two shifts per day. Daily operat- 
ing cost is the product of meters of drift driven per day and the total cost per 
meter. 



BASE CURVES 

(L) Labor Operating Cost (Y L ) = 43.360(X) ' 542 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



91% 
9% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(20 to (35 to per hour 

50 m 2 ) 50 m 2 ) (base rate) 

Miners 68% 59% $18.31 

Helpers 11% 20% 13.86 

Loader operators 7% 6% 16.53 

Utility workers 14% 15% 16.98 

The average wage for labor is $17.28 per v/orker-hour (including burden and 
average shift differential). 

S) Supply Operating Cost (Y s ) = 57. 018 (X) - 61 7 

The supply cost consists of 34% explosives, 33% steel items, 15% drill bits and 
steel, 12% ventilation materials, 5% material waste, and 1% electricity. Supp- 
lies include drill bits and steel, powder, caps, primacord, rockbolts, water 
pipe, compressed air pipe, electricity, ventilation tubing, and material 
waste. 



478 

(E) Equipment Operating Cost (Y E ) = 4.144(X) ' 661 

The equipment operating cost consists of 60% for maintenance and overhaul parts, 
25% for fuel, 11% for tires, and 4% for lubrication. The equipment curve covers 
daily maintenance and overhaul parts, fuel, lubrication, and tires. Equipment 
used in drifting includes jumbo-mounted drifters, front-end loaders, jacklegs, 
auxiliary fans, and scissor lifts. 

ADJUSTMENT FACTORS 

Rock Hardness Factor Drifting productivity is directly related to rock hardness. 
If the compressive strength of the rock is known, or an estimate can be made 
from table A-l of the appendix, multiply the costs obtained from the curves by 
the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) ' 093 

Supply factor (F s ) = 0.579(C) ' 054 

Equipment operation factor (F E ) = 0. 715(C) ' 033 

where: C = compressive rock strength, in pounds per square inch 

Rockbolt Factor For regular bolting of the entire drift, (1.2 bolts per square 
meter), multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) =1.12 

Supply factor (Fs) = 1.13 

Equipment operation factor (F E ) = 1»31 

Shotcrete Factor If the drift is to be shotcreted, multiply the costs obtained from 
the curves by the following factors: 

Labor factor (F L ) =1.03 

Supply factor (F s ) = 1.19 

Equipment operation factor (F E ) = 1.15 



479 



1,000 



c 



E 
© 

Q. 
09 

_o 
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100 



CO 

o 

G 



10 



10 



Underground Mining— Operating Costs 

























j^5> 










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«*&£% 
V*®*^-^ 


Ivor^- 






Y L = 43.360(X)°' 542 

/ ,0.617 
Y s = 57.01 8(X) 




C ,- A^-^^ 






Y E = 4/ 

20! 

1 ' 


u 
] 44(X) 

:X< 50 


.bbl 

i ' 



100 



FACE AREA, square meters 



5.2.1.4.5. Drift development 
LARGE DRIFTS FOR RUBBER-TIRED HAULAGE 



480 

5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.4.6. DRIFT DEVELOPMENT 

DRIFT-TUNNEL BORING 

This section covers costs associated with a mine using drift-tunnel boring machines 
(TBM's) and associated equipment. 

The total cost per meter is the sum of three separate cost curves (labor, supplies, 
and equipment operation) based on the excavated machine diameter (X), in meters. 
The curves are valid for diameters between 2.74 and 10.67 m, operating two shifts 
per day. Total daily cost is the cost per meter times the daily advance rate. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 142.640(X) ' 000 

The operating labor costs are distributed as follows: 

Direct labor 62% 

Maintenance labor 38% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Operator 14% $18.31 

Helpers 22% 13.86 

Support 64% 16.27 

The average wage for labor is $15.92 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 2.845(X) 1 * 896 

The supply cost consists of 81% drill and cutter bits, 5% lubrication, 13% 
electricity, and 1% miscellaneous items. Supplies include oil, filters, wear 
items, and power. 

(E) Equipment Operating Cost (Y E ) = 1.135 (X) 3 * 016 

The equipment operating cost consists of 69% for maintenance and overhaul parts 
and 31% for cutter costs. The equipment operating curve covers daily mainte- 
nance and repair, repair parts, and cutter costs. 

ADJUSTMENT FACTOR 

Contractor Factor A contractor is often used with drift-tunnel boring because of 
the specialized nature of the machinery. If a contractor is used, multiply the 
costs obtained from the curves by the following factor: 

Labor factor (F T ) = 1.94 



481 



Underground Mining— Operating Costs 



c 



1_ 

E 

i_ 

V 
Q. 

V) 

L. 

_o 
"5 



CO 

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u 



10,000 



£ 1,000 



100 



10 





























































































/ 


















/ 




















/ 




















/ 
















// 




/ 












Labor 


ft 




/ 
















S/t 


e/ 








_i 


7 ^ 


?/ 






0.000 ■ 
Y L = 142.640(X) 

1.896 
Y s - 2.845(X) 

Y F = 1.1 3500 




& 


4# 










7 


7 










// 


r 






















2.74 <) 


(< 11 


167 





10 



100 



MACHINE DIAMETER, meters 



5.2.1.4.6. Drift development 
DRIFT/TUNNEL BORING 



482 

5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.5.1. RAISE DEVELOPMENT 
DRIVING RAISES 



The costs calculated from these curves represent two-compartment, conventionally 
driven raises. It is assumed that the raises are timbered and lagged, and contain 
water and compressed air lines. Face areas vary from 2.0 to 9.5 m 2 . Advance 
rates range from 0.83 m per worker-shift for a 2.3-m 2 raise to 0.49 m per worker- 
shift for a 9.3 m 2 raise. It is assumed that blasted material is hauled an aver- 
age distance of 200 m to a conveyance point (ore pass, hoisting station, etc.) using 
rail-mounted equipment. If the material is to be hauled out of the mine, the ton- 
nage attributed to raising should be added to the haulage curves for the period of 
time necessary to complete the raise. 

Total cost per meter is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a face area (X), in square meters. The curves are 
valid for areas between 2 and 9.5 m^, operating two shifts per day. Daily operat- 
ing cost is the product of meters of raise driven per day and the total cost per 
meter. 



BASE CURVES 

(L) Labor Operating Cost (Y L ) = 134. 819 (X) 0,438 

The operating labor costs are distributed as follows: 

Direct labor 96% 

Maintenance labor 4% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(2 to (6 to per hour 

6 m 2 ) 9.5 m 2 ) (base rate) 

Miners 85% 76% $18.31 

Helpers 12% 19% 13.86 

Motor operators 3% 5% 16. 09 

The average wage for labor is $17.53 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 109.009(X)°* 526 

The supply cost consists of 51% timber, 19% explosives, 10% steel pipe, 10% 
ventilation materials, 4% material waste, 5% drill bits and steel, and 1% elec- 
tricity. Supplies include drill bits and steel, powder, caps, lead wire, water 
pipe, compressed air pipe, vent duct, electricity, and timber. 

(E) Equipment Operating Cost (Y E ) = 2 .267 (X)°* 757 

The equipment operating cost consists of 57% for maintenance and overhaul parts, 

33% for ground engaging components, and 10% for lubrication. The equipment 



483 

curve covers maintenance and overhaul parts, ground engaging components, and 
lubrication. Equipment used for raising includes stoper drills, fans, locomo- 
tives, ore cars, and overshot muckers. 

ADJUSTMENT FACTORS 

Timber Factor If the raise is not timbered and lagged, multiply the costs obtained 
from the curves by the following factors: 

Labor factor (F L ) = 0.76 

Supply factor (F s ) = 0.50 

These factors will account for the fact that the only timber needed will be for 
ladders, landings, and drill platforms (stull supported), and that the labor 
will be reduced since no timber installation time will be required. 

Raise Climber Factor If a raise climber is used, construction time is significantly 
reduced, but an extra piece of equipment is required. To modify the costs, 
multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) = 0.56 

Equipment operation factor (Fg) = 1.44 

Rubber-Tired Equipment Factor If an LHD is used for muck disposal, it is assumed 

that the overshot mucker, battery locomotive, and rail cars would be eliminated. 
To compensate for this, multiply the costs obtained from the curves by the fol- 
lowing factors: 

Labor factor (F L ) = 0.99 

Equipment operation factor (Fg) = 1.25 

Steel Chute Factor The placement of a steel chute at the bottom of a raise 

requires additional labor and supplies. However, the need for an overshot 

mucker is eliminated. To account for the additional expense, for each raise, 
add to the costs obtained from the curves the following amounts: 

Labor factor (F L ) = $1,172.00 

Supply factor (F s ) = $6,940.00 

These factors cover the timber, supplies, and labor needed to install a 
steel chute with an air-piston-activated, reverse guillotine steel door. 

To account for the absence of the overshot mucker multiply the equipment costs 
obtained from the curves by the following factor: 

Equipment operation factor (Fp) = 0.80 



484 



Underground Mining— Operating Costs 



1,000 



c 

JO 

© 
(0 



100 



CD 

E 
© 

Q. 

CO 

k. 
a 

=5 10 



CO 

o 
o 



































Labor_____ 








' — -* """ C 


,upP l, °" 


















Y L = 1 34.81 9(X)°* 4 

0.526 
Y s = 109.009(X) 

, v 0.757 
Y E = 2.267(X) 

2<X< 9.5 
































*\orv 






..v oP«'^— 






£<**?£ 


toi^^ 








_^-^" 





























FACE AREA, square meters 



10 



5.2.1.5.1. Raise development 
DRIVING RAISES 



485 



5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.5.2. RAISE DEVELOPMENT 
DROP RAISES 



With the advent of down-the-hole drills, longhole or drop raising is becoming a 
popular method of driving large ventilation raises and ore passes. The costs esti_ 
mated using these curves apply to any unlined raise driven using down-the-hole 
drills and vertical crater retreat blasting methods. Advance rates range from 1.5 m 
per worker-shift for a 4.6-m2 raise to 1.0 m per worker-shift for a 13.5-m^ 
raise. It is assumed that blasted material is hauled an average distance of 200 m 
to a conveyance point (ore pass, hoisting station, etc.) using rubber tired LHD's. 
If the material is to be hauled out of the mine, the tonnage attributed to raising 
should be added to the haulage curves for the period of time necessary to muck the 
raise. 

Total cost per meter is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a face area (X), in square meters. The curves are 
valid for areas between 4.5 and 13.5 mS operating two shifts per day. Daily 
operating cost is the product of meters of raise driven per day and the total cost 
per meter. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 58.314(X) * 374 

The operating labor costs are distributed as follows: 

Direct labor 86% 

Maintenance labor 14% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 
per hour 
(base rate) 

Drillers 29% $18.31 

Helpers 15% 13.86 

Blasters 43% 18.31 

LHD operators 13% 16.53 

The average wage for labor is $17.41 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 136.383(X) * 205 

The supply cost consists of 68% blasting materials, 24% drill bits and steel, 7% 
miscellaneous items, and 1% timber. Supplies include drill bits and steel, 
blasting agent, caps, primers, detonation cord, timber, and caristrap. 



486 

(E) Equipment Operating Cost (Y E ) = 8.895(X) * 711 

The equipment operating cost consists of 43% for maintenance and overhaul parts, 
41% for fuel, 9% for tires, and 7% for lubrication. The equipment curve covers 
daily maintenance and overhaul parts, fuel, lubrication, and tires. Equipment 
used in drop raising includes down-the-hole drills mounted on air tracks, port- 
able air compressors, LHD units, and portable bit grinders. 

ADJUSTMENT FACTORS 

Rock Hardness Factor Down-hole-drill productivity is directly related to rock hard- 
ness. If the compressive strength of the rock is known, or an estimate can be 
made from table A-l in the appendix, multiply the costs obtained from the drop 
raise equations by the following factors (base rock strength = 31,700 psi): 

Labor (F L ) = 0.388(C) ' 093 

Supplies (F s ) = 0.579(C) * 054 

Equipment (F E ) - 0.716(C) * 033 

where: C = compressive rock strength, in pounds per square inch. 

Service Installation Factor Few drop raises are used as service raises. If, 
however, services are installed in the raise, multiply the labor and supply 
costs by the following factors: 

Labor (F L ) =1.51 

Supplies (F s ) =1.37 

This will account for the purchase and installation of rockbolts, ladders, 
landings, and pipe. 



487 



Underground Mining— Operating Costs 



1,000 



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Y L = 58.31 4(X)°' 374 
Y s = 136.383(X)°' 205 




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4.5 <X 


5(X)' 
< 13. 


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5 


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FACE AREA, square meters 



100 



5.2.1.5.2. Raise development 
DROP RAISES 



488 

5.2. UNDERGROUND MINING—OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.5.3. RAISE DEVELOPMENT 
RAISE BORING 

The costs calculated using these curves apply to any unlined bored raise that has 
been drilled down and reamed up. The curves take into account costs incurred in 
preparation of upper and lower stations, drill platform construction, boring machine 
installation, pilot hole drilling, reaming operations, and muck removal. Average 
advance rates, including station preparation, vary from 1.89 m per worker-shift for 
a 1.5-m-diameter raise to 1.06 m per worker-shift for a 3.0-m-diameter raise. It is 
assumed that reamer cuttings are hauled an average distance of 200 m to a conveyance 
point (ore pass, hoisting station, etc.) using rubber-tired LHD's. If the material 
is to be hauled out of the mine, the tonnage attributed to raise boring must be 
added to the haulage curves for the period of time necessary to complete the raise. 

Total cost per meter is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on the raise diameter (X), in meters. The curves are 
valid for areas between 1.5 and 3 m, operating two shifts per day. Daily operating 
cost is the product of meters of raise driven per day and the total cost per meter. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 81. 941 (X) 1 * 376 

The operating labor costs are distributed as follows: 

Direct labor 49% 

Maintenance labor 51% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Miners 31% $18.31 

Raise bore operators 26% 18.31 

Raise bore helpers 26% 13.86 

LHD operators 8% 16.09 

Helpers 8% 13.86 

Nippers 1% 16.09 

The average wage for labor is $16.60 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operation Cost (Y s ) = 180.595(X) 1 - 097 

The supply cost consists of 83% drill and cutter bits, 5% material waste, 4% 
drill steel, 3% electricity, 3% blasting materials, 1% rock support, and 1% 
miscellaneous items. Supplies include drill bits and steel for the air legs, 
drill bits, cutter bits, and drill steel for the boring machine, blasting 
agent, caps, detonation cord, rock bolts, wire mesh, concrete, and 
electricity. 



489 

(E) Equipment Operating Cost (Y E ) = 46. 568CX) 1 • 759 

The equipment operating cost consists of 69% for maintenance and overhaul 
parts, 22% for ground engaging components, 7% for lubrication, and 2% for fuel 
and tires. The equipment curve covers overhaul and maintenance parts, ground 
engaging components, fuel, lubrication, and tires. The equipment used for 
raise boring and station preparation includes air leg drills, LHD units, and 
raise bore machines. 

ADJUSTMENT FACTORS 

Raise Length Factor Because of the high costs incurred in station preparation and 
machine setup, the actual cost per meter will decrease as the length of the 
raise increases. The raise curves were derived using an assumed raise length 
of 100 m. If the length of the raise differs from this, multiply the costs 
obtained from the curves by the following factor: 

Length factor (F L ) = 1 .468(L) _0 - 080 
where L = raise length, in meters. 

The following graph illustrates recommended lengths for various raise diameters: 



1,000 



Raise length, 
in meters 



675 




350 



2.0 2.5 

Raise diameter, in meters 



Lining Factor If the raise is to be used as an ore chute or vent raise, it 

may be lined with steel. To account for this, multiply the labor and supply 
costs by the following factors: 

Labor factor (F L )= 1.12 

Supply factor (F s ) = 1.27(X) - 276 
where X = raise diameter, in meters. 

Service Installation Factor If services are installed in the raise, multiply 
the labor and supply costs by the following factors: 



Labor factor (F L )= 1.21 
Supply factor (Fg) = 1.16 



490 

This will account for the purchase and installation of rockbolts, ladders, 
landings, and pipe. 

Rock Hardness Factor The hardness of the rock being bored has a great effect 

on both penetration rate and cutter life. The curves were derived using rock 
with an assumed compressive strength of 50,000 psi. Total cost may range from 
25% of the cost for rock with a compressive strength of 14,500 psi to 200% of 
the cost for rock with a compressive strength of 75,000 psi. Actual variances 
are very difficult to estimate; however, as a general rule of thumb, the total 
cost per meter obtained from the curves may be multiplied by the following 
factor to compensate for differences in rock hardness: 

Hardness factor (F H ) = 0.0000018(C) 1 * 231 

where C = compressive strength of rock, in pounds per square inch. See 

table A-l in the appendix for average compressive rock strengths, 



491 



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10 



Underground Mining— Operating Costs 

























^^ 










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/$ 










*<£ 






























/ .1-376 - 
Y L = 81. 941 (X) 

, J. 097 
Y s = 180.595(X) 

. J. 759 " 
Y E = 46.568(X) 

1.5 <X< 3 










T - 



10 



RAISE DIAMETER, meters 



5.2.1.5.3. Raise development 
RAISE BORING 



492 

5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.6. INCLINES-DECLINES 



The inclines-declines curve is based on using jumbo drills and LHD haulage and 
assumes the opening is at a 10° angle. The cost per meter of advance does not 
change for angles 5° to 15 °. The average advance is 2.2 m/d in smaller open- 
ings and 0.6 m/d overall in larger openings. 

Total cost per meter is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a face area (X), in square meters. The curves are 
valid for areas between 4 and 50 m^, operating one shift per day. Daily operating 
cost is the product of meters of inclines-declines driven per day and the total cost 

per meter. 

Services installed include water and compressed air lines, and heavy duty steel-re- 
inforced vent tubing. Rock competency is considered good, with just 10% of the back 
requiring rockbolting. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 42. 779 (X)°* 789 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



93% 
7% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Miners 63% $18.11 

Helpers 23% 13.66 

LHD operator 14% 15.89 

The average wage for labor is $16.78 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 48. 709 (X)°* 567 

The supply cost consists of 40% explosives, 44% steel items, and 16% miscellan- 
eous items. Supplies include drill bits and steel, powder, caps, primer, rock- 
bolts, vent line, compressed air pipe, and water pipe. 

(E) Equipment Operating Cost (Y E ) = 1 .498 (X) 1 * 303 

The equipment operating cost consists of 49% for repair parts, 32% for fuel and 
lubrication, and 19% for tires. The equipment operating curve covers daily 
maintenance and repair, repair parts, and lubrication for drills, fans, LHD's, 
and other equipment used to drive the opening. 



493 

ADJUSTMENT FACTORS 

Rock Hardness Factor Drifting productivity is directly related to rock hardness. 
If the compressive strength of the rock is known, or an estimate can be made 
from table A-l in the appendix, multiply the costs obtained from the curves by 
the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) - 0.388(C) * 093 

Supply factor (F s ) = 0.579(C) - 054 

Equipment operation factor (F E ) = 0.715(C) ' 033 

where C = compressive rock strength, in pounds per square inch. 

Rockbolt Factor For regular bolting of the entire drift (1.2 bolts per square 
meter) multiply the costs obtained from the curves by the following factors: 

Labor factor (F L ) =1.08 

Supply factor (Fg) = 1.14 

Equipment operation factor (Fg) =1.42 

Shotcrete Factor If the drift is to be shotcreted, multiply the costs obtained from 
the curves by the following factors: 

Labor factor (F L ) = 1.03 

Supply factor (F s ) =1.24 

Equipment operation factor (Fg) = 1.15 

Concrete Factor If the drift is to be lined with concrete, multiply the costs ob- 
tained from the curves by the following factors: 

Labor factor (Fl) =1.64 

Supply factor (F s ) = 1.72 

Equipment operation factor (Fg) = 2.26 

Steel Set Factor If steel sets are to be used, multiply the costs obtained from the 
curves by the following factors: 

Labor factor (F L ) =1.37 

Supply factor (F s ) = 2.47 

Equipment operation factor (Fg) = 1.19 



494 



Underground Mining— Operating Costs 



1,000 



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Y L = 42.779(X) a789 " 

0.567 
Y S = 48.709(X) 

1.303 
Y E = 1.498(X) 

4<X< 50 




















































! I I I 



10 
FACE AREA, square meters 

5.2.1.6. Inclines/Declines 



100 



495 
5.2. UNDERGROUND MINING— OPERATING COSTS 
5.2.1. PRODUCTION DEVELOPMENT 
5.2.1.7. LARGE UNDERGROUND EXCAVATIONS 



The costs derived from these curves apply to a horizontal opening driven with a two 
boom jumbo and LHD haulage a distance of 200 m. It is assumed the walls will be 
supported with rockbolts and wire mesh. If the material is to be hauled out of the 
mine, the tonnage attributed to excavating should be added to to the haulage curves 
for the period of time necessary to complete the excavation. It is assumed that all 
equipment needed for the excavation will be required for the mining operation, and 
will be considered in the mine equipment cost curve. 

Total cost per meter is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a face area (X), in square meters. The curves are 
valid for areas between 13.94 and 334.45 m^, operating one shift per day. Daily 
operating cost is the product of meters of excavations per day and the total cost 
per meter. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 10. 817(X) ' 947 

The operating labor costs are distributed as follows: 

Direct labor 91% 

Maintenance labor 9% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Miners 76% $18.11 

Helpers 19% 13.66 

Motor operators 5% 15. 89 

The average wage for labor is $17.16 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 23.050(X)°- 793 

The supply cost consists of 66% explosives, 28% steel items, and 6% ventilation. 
Supplies include drill bits and steel, powder, caps, primer cord, water pipe, 
compressed air pipe, vent duct, rockbolts and wire mesh. 

(E) Equipment Operating Cost (Y E ) = 1.739 (X) ' 917 

The equipment operating cost consists of 45% for overhaul and repair parts, 35% 
for tires, and 20% for fuel and lubrication. The equipment operating curve 
covers daily maintenance and overhaul parts and lubrication for drills, fans, 
LHD's, and roof bolters. 



496 

ADJUSTMENT FACTORS 

Track Haulage Factor If track haulage is used, the LHD will be replaced by a 

battery locomotive, overshot mucker, and rail cars. Rubber-tired equipment is 
more expensive to operate than rail-mounted equipment. Therefore, to account 
for cost of the equipment and installing rail, multiply the costs obtained from 
the curves by the following factors: 

Supply factor (F s ) = 1.13 

Equipment operation factor (Fg) = 0.71 

Shotcrete Factor For additional expenses associated with coating the excavation to 
a shotcrete depth of 3.8 cm, multiply the costs obtained from the curves by the 
following factors: 

Labor factor (F L ) = 1.05 

Supply factor (F s ) = 1.59 

Equipment operation factor (Fg) = 1.09 



497 



Underground Mining— Operating Costs 



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, v 0.947 
-Y L = 10.817(X) 

, N 0.793 
Y s = 23.050(X) 

-Y E = 1.739(X) " 917 
13.94 <X< 334.45 




































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FACE AREA, square meters 

5.2.1.7. Large underground excavations 



1,000 



498 

5.2. UNDERGROUND MINING—OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.9. STOPE PREPARATION 

Stope preparation includes any operation and excavation necessary to bring a stope 
into full-scale production. Stope preparation is, of course, different for every 
mining method, so each method is dealt with individually in the following sections. 
In general, however, costs derived from the following curves cover every operation 
and excavation needed to develop the stope for full capacity extraction, and to con- 
nect it with the main haulage system. A detailed list of items needed for indivi- 
dual methods is provided in each of the following sections. In order to obtain an 
accurate cost estimation, the evaluator must provide the dimensions and estimated 
tonnage of a typical stope designed for the deposit under evaluation. 

Each operating cost must be calculated as a daily cost, that necessitates the amount 
of daily stope development required after production begins. One method to arrive 
at this daily cost is to use the following relationship: 

daily cost = [cost per metric ton] x [ (metric tons of minable ore - metric 

tons of ore developed prior to production) / (mine life, in days)]. 

Another method is to calculate the total number of stopes needed to mine the entire 
ore body, subtract the number of stopes developed during preproduction, and divide 
the remaining number of stopes by the mine life in days . This is the number of 
stopes to be developed on a daily basis to be used as a multiplier on the following 
stope preparation sections. 



499 

5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.9.1. STOPE PREPARATION 
BLOCK CAVING 

Items needed for preparation of a block caving stope include panel drifts, access 
drifts, grizzly drifts, undercut drifts, draw raises, transfer raises, and cave 
induction. All ore chutes, grizzlies, and support and reinforcement items are in- 
cluded in the curve. The curves cover blocks in horizontal area and of any height. 
Costs represent a system in which ore is moved to the main haulage level by gravity 
methods. 

Total cost per block is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a typical block plan view area (X), in square meters. 
The curves are valid for areas between 2,400 and 6,300 m^, operating two shifts 
per day. The costs are then multiplied by the number of blocks developed per day to 
obtain a cost per day or the costs are divided by the metric tons per block to ob- 
tain a cost per metric ton. 

BASE CURVES 

(L) Labor Cost (Y L ) = 573.198(X) * 881 

The operating labor costs are distributed as follows: 

Direct labor 98% 

Maintenance labor 2% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Miners 72% $18.31 

Helpers 24% 13.86 

LHD operators 4% 16.09 

The average wage for labor is $17.15 per worker-hour (including burden and 
average shift differential). 

(S) Supply Cost (Y s ) = 650.100(X) * 883 

The supply cost consists of 26% steel items, 25% concrete, 20% timber, 18% 
blasting supplies, 5% contingency, 4% drill bits and steel, and 2% all other 
items. Supplies necessary for the development of a block caving stope include 
drill bits and steel, blasting agent, caps, timber, concrete, rail, water and 
compressed air pipe, ventilation ducting, rockbolts, electricity, and steel for 
ore chutes and grizzlies. 

(E) Equipment Cost (Y E ) = 11 .355(X)°- 885 

The equipment operating cost consists of 76% for maintenance and overhaul parts, 

9% for tires, 8% for fuel, and 7% for lubrication. The equipment curve covers 



500 

daily maintenance and overhaul parts, tires, fuel, and lubrication. Equipment 
used in stope preparation for block caving includes jacklegs, auxiliary fans, 
overshot muckers, locomotives, ore cars, LHD's, and fan drills. 

ADJUSTMENT FACTORS 

Nongravity Caving Factor If the ore is to be transferred to the main haulage system 
using slushers or LHD's, adjustments must be made to the costs. Multiply the 
costs obtained from the curves by the following factors: 

Slushers: 

Labor factor (F L ) = 0.85 

Supply factor (F s ) = 0.83 

Equipment operation factor (Fg^ = °*99 

LHD's: 

Labor factor (F L ) = 0.60 

Supply factor (F s ) = 0.84 

, Equipment operation factor (Fj?) = °*77 

Rock Hardness Factor Block caving development costs are directly related to rock 
hardness. If the compressive strength of the rock is known, or an estimate can 
be made from table A-l in the appendix, multiply the costs obtained from the 
equations by the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) - 0.388(C) ' 093 

Supply factor (F s ) = 0.579(C) * 054 

Equipment operation factor (F E ) = 0.716(C) 0,033 

where C - compressive rock strength, in pounds per square inch. 



501 



Underground Mining— Operating Costs 



10,000 



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0.881 
Y L = 573.1 98(X) 

0.883 
Y s = 650.1 00(X) 

0.885 
Y E = 11.355(X) 

2,400 <X< 6,300 
















































































en^- 


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1,000 



10,000 
PLAN VIEW AREA, square meters 



100,000 



5.2.1.9.1. Stope preparation 
BLOCK CAVING 



502 

5.2. UNDERGROUND MINING—OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.9.2. STOPE PREPARATION 

CONTINUOUS MINING 



Continuous miner stopes are initiated with multientry panels directly off the main 
haulage level. The method changes little from the initial cuts to the completion 
of the stope. The cost of the main haulage level cannot be included in the stope 
preparation costs since many stopes benefit from this one entry. Because the cost 
per ton of excavating the production entries from the haulage level is the same as 
that for production mining, no stope preparation cost is required. 

For operating cost estimation, daily haulageway development must be sufficient to 
open up the number of new stopes required to maintain production. 



503 



5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.9.3. STOPE PREPARATION 
CUT AND FILL 



Items needed for preparation of a cut-and-fill stope include a crosscut from the 
main haulageway, a blind raise access cut with two ore chutes, a manway, a timber 
slide, and an initial bottom sill cut. The curves cover stopes ranging from 2.4 m 
wide by 61.0 m long to 4.9 m wide by 106.7 m long and of any reasonable height. 

Total cost per stope is the sum of three separate cost curves (labor, equipment 
operation, and supplies) based on a plan view area (X), product of length and width, 
in square meters. The curves are valid for areas between 140 and 540 m 2 , operat- 
ing two shifts per day. The costs are then multiplied by the number of stopes deve- 
loped per day to obtain a cost per day or the costs are divided by the metric tons 
per stope to obtain a cost per metric ton. 

BASE CURVES 

(L) Labor Cost (Y L ) = 4, 422. 948 (X) ' 369 

The operating labor costs are distributed as follows: 



Direct labor , 

Maintenance labor. 



97% 
3% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(140 to (340 to per hour 

340 m 2 ) 540 m 2 ) (base rate) 

Miners 69% 73% $18.31 

Helpers 25% 23% 13.86 

Motor operators 6% 4% 16.09 

The average wage for labor is $17.13 per worker-hour (including burden and 
average shift differential). 

(S) Supply Cost (Y S ) = 16,203. 090(X) ' 197 

The supply cost consists of 31% timber, 25% blasting supplies, 24% steel items, 
5% drill bits and steel, 5% contingency, 4% ventilation material, 3% sandfill 
preparation material, and 3% electricity and miscellaneous items. Sup- 
plies necessary for the development of a cut-and-fill stope include drill bits 
and steel, blasting agent, caps, timber, rail, ballast, steel pipe, ventilation 
ducting, rockbolts, burlap, electricity, and steel for ore chutes. 

(E) Equipment Cost (Y E ) = 311 .270(X) * 201 

The equipment operating cost consists of 85% for maintenance and overhaul parts, 
8% for lubrication, and 7% for ground engaging components. The equipment curve 
covers maintenance and overhaul parts, ground engaging components, and lubrica- 
tion. Equipment used in stope preparation for cut-and-fill mining includes 



504 

jacklegs , stopers, jackhammers, auxiliary fans, overshot muckers, locomotives, 
ore cars, and slushers. 

ADJUSTMENT FACTOR 

Rock Hardness Factor Cut-and-fill stope development costs are directly related to 
rock hardness. If the compressive strength of the rock is known, or an estimate 
can be made from table A-l in the appendix, multiply the costs obtained from the 
cut-and-fill stope preparation equations by the following factors (base rock 
strength = 31,700 psi): 

Labor factor (F L ) = 0.403(C) - 090 

Supply factor (F s ) = 0.590(C) ' 052 

Equipment operation factor (F E ) = 0.716(C) 0,033 

where C = compressive rock strength, in pounds per square inch. 



505 



100 



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Underground Mining— Operating Costs 















^uoDlies 












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Labor 


























































Eq 


aipment ^peratu) 


n 










, N 0.369 
Y L = 4,422.948(X) 

0.197 . 
Y S =16,203.090(X) 

0.201 . 


















Y E 


= jii.; 
140<X 


< 540 





1,000 



PLAN VIEW AREA, square meters 



5.2.1.9.3. Stope preparation 
CUT AND FILL 



506 

5.2. UNDERGROUND MINING—OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.9.4. STOPE PREPARATION 

LONGHOLE-SUBLEVEL 



Items needed for preparation of a sublevel-longhole stope include sublevels, a bot- 
tom sill cut, a scram drift, crosscuts connecting the bottom sill and scram drifts, 
an access raise, and a slot raise. The curves cover stopes ranging from 5.4 m wide 
by 61.0 m high by 76.2 m long to 18.3 m wide X 121.9 meters high by 152.4 m long. 

Total cost per stope is the sum of three separate cost curves (labor, equipment 
operation, and supplies) based on a profile view area (X), product of length and 
height, in square meters. The curves are valid for areas between 4,600 and 18,600 
m 2 , operating two shifts per day. The costs are then multiplied by the number of 
stopes developed per day to obtain a cost per day or the costs are divided by the 
metric tons per stope to obtain a cost per metric ton. 

BASE CURVES 

(L) Labor Cost (Y L ) - 357.256 (X) ' 685 

The operating labor costs are distributed as follows: 



Direct labor , 

Maintenance labor. 



95% 
5% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(4,600 to (11,600 to per hour 

11,600 m2) 18,600 m 2 ) (base rate) 

Miners 65% 65% $18.31 

Helpers 22% 22% 13.86 

LHD operators 9% 8% 16.09 

Utility workers 3% 4% 15.94 

Surveyors 1% 1% 15.08 

The average wage for labor is $17.05 per worker-hour (including burden and 
average shift differential). 

(S) Supply Cost (Y S ) = 363.252(X) ' 687 

The supply cost consists of 46% blasting supplies, 16% steel items, 10% drill 
bits and steel, 9% ventilation materials, 9% timber, 5% contingency, and 5% 
electricity and miscellaneous items. Supplies necessary for the development of 
a sublevel-longhole stope include drill bits and steel, blasting agent, caps, 
timber, water and compressed air pipe, ventilation ducting, electricity, and 
rockbolts. 

(E) Equipment Cost (Y E ) = 23. 555 (X)°* 707 

The equipment operating cost consists of 57% for maintenance and overhaul parts, 

19% for tires, 17% for fuel, and 7% for lubrication. The equipment curve covers 



507 

maintenance and overhaul parts, fuel, tires, and lubrication. Equipment used in 
stope preparation for sublevel-longhole mining includes jacklegs, auxiliary 
fans, LHD's, booster compressors, jumbo-mounted drifters, and air-track -mounted 
longhole drills. 

ADJUSTMENT FACTOR 

Rock Hardness Factor Sublevel-longhole stope development costs are directly related 
to rock hardness. If the compressive strength of the rock is known, or an esti- 
mate can be made from table A-l in the appendix, multiply the costs obtained 
from the equations by the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.392(C) ' 093 

Supply factor (F s ) = 0.579(C) ' 054 

Equipment operation factor (F E ) = 0.716(C) 0,033 

where C = compressive rock strength, in pounds per square inch. 



508 



Underground Mining— Operating Costs 



1,000 



o_ 
o 



a. 
<n 

L. 

_D 

"5 
XI 



X) 

c 
o 
w 

O 



o 
o 



100 



10 

















































































M 
















































































O 
















*0$ 


^ 
























, v 0.685 - 
Y L = 357.256(X) 


























, x 0.687 
Y s = 363.252(X) 

. x 0.707 
Y E = 23.555(X) 


























4- 


,600 <X 


< 1f 


J.60C 


} 



1,000 



10,000 
PROFILE VIEW AREA, square meters 

5.2.1.9.4. Stope preparation 
LONGHOLE/SUBLEVEL 



^00,000 



509 

5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.9.5. STOPE PREPARATION 
RESUING 

Items needed for preparation of a resuing stope include an access drift along the 
stope in the footwall, a blind raise access cut with two ore chutes and a manway, 
and a starter drift running the length of the stope. The blind raise runs the en- 
tire height of the stope, and both the raise and the starter drift are driven in ore 
and waste. Ore excavated during development is generally discarded as waste. The 
curves cover stopes ranging from 22.9 m long by 18.3 m high to 45.7 m long by 38.1 m 
high, and 1.5 m in width. 

Total cost per stope is the sum of three separate cost curves (labor, equipment 
operation, and supplies) based on a profile view area (X), product of length and 
height, in square meters. The curves are valid for areas between 350 and 2,000 
m 2 , operating two shifts per day. The costs are then multiplied by the number of 
stopes developed per day to obtain a cost per day or the costs are divided by the 
metric tons per stope to obtain a cost per metric ton. 

BASE CURVES 

(L) Labor Cost (Y L ) = 1,077.505(X) ' 448 

The operating labor costs are distributed as follows: 

Direct labor 97% 

Maintenance labor 3% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Miners 86% $18.31 

Helpers 9% 13.86 

Motor operators 5% 18.31 

The average wage for labor is $17.80 per workerHiour (including burden and 
average shift differential). 

(S) Supply Cost (Y S ) = 4,004.706(X) - 290 

The supply cost consists of 61% steel items, 13% blasting supplies, 12% timber, 
6% ventilation materials, 4% drill bits and steel, 3% contingency, and 1% elec- 
tricity and miscellaneous items. Supplies necessary for the development of a 
resuing stope include drill bits and steel, blasting agent, caps, timber, rail, 
ballast, steel pipe, ventilation ducting, electricity, and steel for ore chutes. 

(E) Equipment Cost (Y E ) = 24. 097 (X) ' 499 

The equipment operating cost consists of 67% for maintenance and overhaul parts, 

16% for ground engaging components, 9% for fuel, and 8% for lubrication. The 



510 

equipment curve covers maintenance and overhaul parts, ground engaging compo- 
nents, fuel, and lubrication. Equipment used in stope preparation for resuing 
includes jacklegs , stopers, auxiliary fans, overshot muckers, locomotives, ore 
cars, and slushers. 

ADJUSTMENT FACTOR 

Rock Hardness Factor Resuing stope development costs are directly related to rock, 
hardness. If the compressive strength of the rock is known, or an estimate can 
be made from table A-l in the appendix, multiply the costs obtained from the 
equations by the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.403(C) ' 090 

Supply factor (F s ) = 0.590(C) * 052 

Equipment operation factor (F E ) - 0.716(C) 0,033 

where C = the compressive rock strength, in pounds per square inch. 



511 



Underground Mining— Operating Costs 



100,000 



o 10,000 



M 

\- 
O 

a. 
m 

o 
"o 

T3 



in 
o 

o 



1,000 



100 





































































Sup 




r 
















' U 






































































































)€> ^ 


C\Q° 
















^1 


o< 














**»*! 






, x 0.448 
Y L = 1,077.505(X) 

, N 0.290 
Y s = 4.004.706(X) 

0.499 






































Y E~ 


550 < X < 


57 / ^A 

i 2.0 


00 


_— J 



100 



1,000 
PROFILE VIEW AREA, square meters 

5.2.1.9.5. Stope preparation 
RESUING 



10,000 



512 

5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.9.6. STOPE PREPARATION 

ROOM AND PILLAR, MEDIUM TO HARD ROCK 



The main item needed to prepare a metallic room-and-pillar stope is an access drift 
from a main haulageway running the entire length of the panel. The curves cover 
panels ranging from 12,900 to 30,200 m 2 in horizontal area, and of any feasible 
height. 

Total cost per stope is the sum of three separate cost curves (labor, equipment 
operation, and supplies) based on a plan view area (X), product of length and width 
in square meters. The curves are valid for areas between 12,900 and 30,200 m 2 , 
operating two shifts per day. The costs are then multiplied by the number of stopes 
developed per day to obtain a cost per day or the costs are divided by the metric 
tons per panel to obtain a cost per metric ton. 

BASE CURVES 

(L) Labor Cost (Y L ) = 4. 019 (X)°-890 

The operating labor costs are distributed as follows: 



Direct labor , 

Maintenance labor. 



92% 
8% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(12,900 to (21,550 to per hour 

21,550 m 2 ) 30,200 m 2 ) (base rate) 

Miners 46% 43% $18.31 

Helpers 11% 22% 13.86 

Utility workers 15% 12% 16.98 

Utility helpers 15% 12% 13.86 

Loader operators 7% 8% 16. 53 

Surveyors 6% 3% 15.08 

The average wage for labor is $16.53 per worker-hour (including burden and 
average shift differential). 

(S) Supply Cost (Y S ) = 2.686(X) ' 997 

The supply cost consists of 58% blasting supplies, 12% steel items, 11% drill 
bits and steel, 10% ventilation materials, 5% contingency, and 4% electricity 
and miscellaneous items. Supplies necessary for the development of a metallic 
room-and-pillar stope include drill bits and steel, blasting agent, caps, water 
and compressed air pipe, ventilation materials, electricity, and rockbolts. 

(E) Equipment Cost (Y E ) = 0. 046 (X) 1 ' 128 

The equipment operating cost consists of 59% for maintenance and overhaul parts, 

21% for fuel, 13% for tires, and 7% for lubrication. The equipment curve covers 



513 

maintenance and overhaul parts, fuel, tires, and lubrication. Equipment used in 
stope preparation for metallic room-and-pillar mining includes auxiliary fans, 
front-end loaders, jacklegs, scissor lifts, and jumbo-mounted drifters. 

ADJUSTMENT FACTOR 

Rock Hardness Factor Drifting productivity is directly related to rock hardness. 
If the compressive strength of the rock is known, or an estimate can be made 
from table A-l in the appendix, multiply the costs obtained from the equations 
by the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) * 093 

Supply factor (F s ) = 0.579(C) ' 054 

Equipment operation factor (F E ) = 0.715(C) 0,033 

where C = compressive rock strength, in pounds per square inch. 



514 



100,000 



ID 
Q. 

o 



V 

Q. 

n 

a 

~o 
-a 



O 
O 



10,000 



1.000 



10,000 



Underground Mining— Operating Costs 















i'-i p& ^^ 








5"0 1 


^ 










ggf^-""^ 








































^ r 








, x 0.890 _ 
Y L = 4.019(X) 

997 
Y s = 2.686(X) 

1 1 9R 
Y E = 0.046(X) 

12.900 <X< 30.200 


^ 


X^ 






r 



100.000 



PLAN VIEW AREA, square meters 



5.2.1.9.6. Stope preparation 
ROOM & PILLAR. MED.UM TO HARD ROCK 



515 



5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.9.7. STOPE PREPARATION 

ROOM AND PILLAR, NONMETALLIC SOFT ROCK 



The main item needed to develop a nonmetallic room-and-pillar stope consists of an 
access drift from a main haulageway running the entire length of the panel. The 
curves cover panels ranging from 14,800 to 33,500 m 2 in horizontal area, and of 
any feasible height. 

Total cost per stope is the sum of three separate cost curves (labor, equipment 
operation, and supplies) based on a plan view area (X), product of length and width, 
in square meters. The curves are valid for areas between 14,800 and 33,500 m 2 , 
operating two shifts per day. The costs are then multiplied by the number of stopes 
developed per day to obtain a cost per day or the costs are divided by the metric 
tons per panel to obtain a cost per metric ton. 

BASE CURVES 

(L) Labor Cost (Y L ) = 43.903(X) - 557 

The operating labor costs are distributed as follows: 



Direct labor , 

Maintenance labor. 



93% 
7% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(14,800 to (24,150 to per hour 

24,150 m 2 ) 33,500 m 2 ) (base rate) 

Miners 15% 23% $18.31 

Loader operators 10% 15% 16.53 

Shuttle operators 10% 15% 16.09 

Utility workers 29% 23% 16.98 

Utility helpers 24% 16% 13.86 

Surveyors 12% 8% 15.08 

The average wage for labor is $16.30 per worker-hour (including burden and 
average shift differential). 

(S) Supply Cost (Y S ) = 20.909(X) * 632 

The supply cost consists of 63% steel items, 10% drill bits and steel, 10% 
blasting supplies, 5% electricity, 4% ventilation materials, 4% contingency, and 
4% miscellaneous items. Supplies necessary for the development of a nonmetallic 
room-and-pillar stope include drill bits and steel, blasting agent, caps, water 
and compressed air pipe, ventilation materials, electricity, and rockbolts. 

(E) Equipment Cost (Y E ) = 0.117 (X) 0,908 

The equipment operating cost consists of 69% for maintenance and overhaul parts, 

17% for tires, 11% for lubrication, and 3% for fuel. The equipment curve covers 



516 

maintenance and overhaul parts, fuel, tires, and lubrication. Equipment used in 
stope preparation for nonmetallic room-and-pillar mining includes roof bolters, 
ANFO trucks, undercutters , loaders, shuttle cars, portable transformers-recti- 
fiers, and jumbo-mounted drifters. 

ADJUSTMENT FACTOR 

Rock Hardness Factor Drifting productivity is directly related to rock hardness. 
If the compressive strength of the rock is known, or an estimate can be made 
from table A-l in the appendix, multiply the costs obtained from the equations 
by the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) * 093 

Supply factor (F s ) = 0.579(C) * 054 

Equipment operation factor (F E ) = 0.715(C) 0,033 

where C = compressive rock strength, in pounds per square inch. 



517 



100,000 



c 
o 

Q. 

i_ 
O 

a. 
n 
_o 
"o 

en 

i- 
cn 
o 
o 



10,000 



1.000 



100 



10,000 



Underground Mining— Operating Costs 





























































































• »»r 










€**£ 


f>-^ 


, ,0.557 _ 
Y L = 43.903(X) 

Y s = 20.909(X)°- 632 _ 

, ,0.908 
Y E = 0.117(X) 

14,800 <X< 33,500 
















^~ 





100,000 



PLAN VIEW AREA, square meters 



5.2.1.9.7. Stope preparation 
ROOM & PILLAR, NONMETALLIC SOFT ROCK 



518 

5.2. UNDERGROUND MINING—OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.9.8. STOPE PREPARATION 
SHRINKAGE 



Items needed for preparation of a shrinkage stope include a bottom sill cut, a scram 
drift, crosscuts from the scram to the bottom sill drift, an access raise, and dog_ 
holes along the raise to connect with the stope as mining progresses. The curves 
are based on the assumption that ore will be drawn from the crosscuts using LHD's. 
Stopes ranging from 2.4 m wide by 45.7 m long to 5.5 m wide by 76.2 m long are 
covered by the curve. Stope height is fixed at 61 m. 

Total cost per stope is the sum of three separate cost curves (labor, equipment 
operation, and supplies) based on a plan view area (X), product of length and width, 
in square meters. The curves are valid for areas between 100 and 440 m 2 , operat- 
ing two shifts per day. The costs are then multiplied by the number of stopes deve- 
loped per day to obtain a cost per day or the costs are divided by the metric tons 
per stope to obtain a cost per metric ton. 

BASE CURVES 

(L) Labor Cost (Y L ) = 9, 917. 618 (X) ' 329 

The operating labor costs are distributed as follows: 



Direct labor , 

Maintenance labor. 



96% 
4% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(100 to (270 to per hour 

270 m 2 ) 440 m 2 ) (base rate) 

Miners 70% 65% $18.31 

Helpers 23% 27% 13.86 

LHD operators 7% 8% 16.09 

The average wage for labor is $17.09 per worker -hour (including burden and 
average shift differential). 

(S) Supply Cost (Y S ) - 7,445.199(X) ' 335 

The supply cost consists of 37% blasting supplies, 19% steel items, 15% timber, 
11% ventilation materials, 9% drill bits and steel, 5% contingency, and 4% elec- 
tricity and miscellaneous items. Supplies necessary for the development of a 
shrinkage stope include drill bits and steel, blasting agent, caps, timber, 
water and compressed air pipe, ventilation ducting, electricity, and rockbolts. 

(E) Equipment Cost (Y E ) = 373. 610(X) ' 388 

The equipment operating cost consists of 64% for maintenance and overhaul parts, 
20% for tires, 10% for fuel, and 6% for lubrication. The equipment curve covers 
maintenance and overhaul parts, fuel, tires, and lubrication. Equipment used in 



519 

stope preparation for shrinkage mining includes s topers, jacklegs, auxiliary 
fans, LHD's, and jumbo-mounted drifters. 

ADJUSTMENT FACTOR 

Rock Hardness Factor Shrinkage stope development costs are directly related to rock 
hardness. If the compressive strength of the rock is known, or an estimate can 
be made from table A-l of the appendix, multiply the costs obtained from the 
equations by the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.399(C) * 091 

Supply factor (F s ) - 0.585(C) ' 053 

Equipment operation factor (F E ) = 0.717(C) * 033 

where C = compressive rock strength, in pounds per square inch. 



520 



Underground Mining— Operating Costs 



1 00,000 



o 

a 
o 



o 

a. 

w 10.000 
o 



o 
o 



1,000 













Laboj^ — — - ' 








Suppl'^f____ 












Y L = 9,91 7.61 8(X)°' 329 

0.335 . 
Y s = 7,445.1 99(X) 

Y E = 373.61 0(X) 
100 <X< 440 






























Equips 


t operaUon_ 



















100 



1,000 



PLAN VIEW AREA, square meters 



5.2.1.9.8. Stope preparation 
SHRINKAGE 



521 



5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.9.9. STOPE PREPARATION 
SQUARE SET 



Items needed for preparation of a square set stope include a crosscut from the main 
haulageway, an initial bottom sill cut, and a blind raise access cut with two ore 
chutes, a manway, and a timber slide. The curves cover stopes ranging from 2.4 m 
wide by 45.7 meters long to 4.9 m wide by 76.2 m long, and of any reasonable height. 

Total cost per stope is the sum of three separate cost curves (labor, equipment 
operation, and supplies) based on a plan view area (X), product of length and width, 
in square meters. The curves are valid for areas between 100 and 400 m 2 , operat- 
ing two shifts per day. The costs are then multiplied by the number of stopes deve- 
loped per day to obtain a cost per day or the costs are divided by the metric tons 
per stope to obtain a cost per metric ton. 

BASE CURVES 

(L) Labor Cost (Y L ) = 6, 114. 261 (X) * 340 

The operating labor costs are distributed as follows: 



Direct labor , 

Maintenance labor. 



97% 

3% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(100 to (250 to per hour 

250 m 2 ) 400 m 2 ) (base rate) 

Miners 69% 73% $18.31 

Helpers 26% 24% 13.86 

Motor operators 5% 3% 16.09 

The average wage for labor is $16.93 per worker-hour (including burden and 
average shift differential). 

(S) Supply Cost (Y S ) = 17,393.433(X) * 208 

The supply cost consists of 43% timber, 20% steel items, 19% blasting supplies, 
9% contingency, 3% drill bits and steel, 3% ventilation materials, and 3% elec- 
tricity and miscellaneous items. Supplies necessary for the development of a 
square set stope include drill bits and steel, blasting agent, caps, timber, 
blocking, rail, ballast, steel pipe, ventilation ducting, electricity, and steel 
for ore chutes. 

(E) Equipment Cost (Y E ) = 375.160(X) * 178 

The equipment operating cost consists of 83% for maintenance and overhaul parts, 
10% for lubrication, and 7% for ground engaging components. The equipment curve 
covers maintenance and overhaul parts, ground engaging components, and lubrica- 
tion. Equipment used in stope preparation for square set mining includes jack- 



522 

legs, stopers, auxiliary fans, overshot muckers, locomotives, ore cars, and 
slushers. 

ADJUSTMENT FACTOR 

Rock Hardness Factor Square set stope development costs are directly related to 

rock hardness. If the compressive strength of the rock is known, or an estimate 
can be made from table A-l in the appendix, multiply the costs obtained from the 
equations by the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.403(C) * 090 

Supply factor (F s ) = 0.590(C) * 052 

Equipment operation factor (F E ) = 0.716(C) 0,033 

where C = compressive rock strength, in pounds per square inch. 



523 



100,000 



© 
a. 
o 



4) 

a 
n 
_o 

"o 

•o 



O 
O 



10,000 



1.000 



100 



Underground Mining— Operating Costs 



I 








I 
Supolies 








1 abor 




































































Equipment 


operation 








■ — ■ 














Y L = 6,11 4.261 (X) 

0.208 
Ys= 17,393.433(X) 


i 












T E 


100 < 


X< 40( 

i 


) 

i ' 



100 



1,000 



PLAN VIEW AREA, square meters 



5.2.1.9.9. Stope preparation 
SQUARE SET 



524 

5.2. UNDERGROUND MINING—OPERATING COSTS 

5.2.1. PRODUCTION DEVELOPMENT 

5.2.1.9.10. STOPE PREPARATION 

VERTICAL CRATER RETREAT 



Items needed for preparation of a vertical crater retreat stope include a topsill 
cut, a bottom sill cut, and access drifts. The curves are based on the assumption 
that, during production, ore will be drawn from the bottom sill using remote con- 
trolled LHD's. Stopes ranging from 4.6 to 11.6 m wide are covered by the curves. 
Stope length is estimated at 61 m, but may be varied plus or minus 25% without 
affecting the accuracy of the calculations. Stope height must be within the limits 
of down-the-hole drills. 

Total cost per stope is the sum of three separate cost curves (labor, equipment 
operation, and supplies) based on a plan view area (X), product of length and width, 
in square meters. The curves are valid for areas between 250 and 750 m 2 , operat- 
ing two shifts per day. The costs are then multiplied by the number of stopes deve- 
loped per day to obtain a cost per day or the costs are divided by the metric tons 
per stope to obtain a cost per metric ton. 

BASE CURVES 

(L) Labor Cost (Y L ) = 2 ,254.882(X) ' 464 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor, 



94% 
6% 



(S) 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(250 to (500 to per hour 

500 m 2 ) 750 m 2 ) (base rate) 

Miners 60% 64% $18.31 

Helpers 24% 23% 13.86 

LHD operators 10% 10% 16.09 

Utility workers 4% 2% 15.42 

Surveyors 2% 1% 15.08 

The average wage for labor is $16.96 per worker-hour (including burden and 
average shift differential). 

Supply Cost (Y S ) = 1,086.699(X) * 642 

The supply cost consists of 51% blasting supplies, 20% steel items, 11% drill 
bits and steel, 10% ventilation materials, 5% contingency, and 3% electricity 
and miscellaneous items. Supplies necessary for the development of a vertical 
crater retreat stope include drill bits and steel, blasting agent, caps, water 
and compressed air pipe, ventilation ducting, electricity, and rockbolts. 



525 

(E) Equipment Cost (Y E ) = 10.062(X) ' 969 

The equipment operating cost consists of 64% for maintenance and overhaul parts , 
19% for tires, 11% for fuel, and 6% for lubrication. The equipment curve covers 
maintenance and overhaul parts, fuel, tires, and lubrication. Equipment used in 
stope preparation for vertical crater retreat mining includes LHD's, jacklegs, 
auxiliary fans, and jumbo-mounted drifters. 

ADJUSTMENT FACTOR 

Rock Hardness Factor Vertical crater retreat stope development costs are directly 
related to rock hardness. If the compressive strength of the rock is known, or 
an estimate can be made from table A-l in the appendix, multiply the costs 
obtained from the equations by the following factors (base rock strength = 
31,700 psi): 

Labor factor (F L ) = 0.404(C) ' 089 

Supply factor (F s ) = 0.584(C) ' 053 

Equipment operation factor (F E ) = 0.716(C) ' 033 

where C = compressive rock strength, in pounds per square inch. 



526 



Underground Mining— Operating Costs 



100,000 



a. 
o 

■»-> 

W 



V 

a 



£ 10,000 
"5 



O 
a 



1,000 





















































Y L =2,254.882(X) 0,464 

" Y s = 1,086.699(X)°' 

, ,0.969 
Y E = 10.062(X) 

250 <X< 750 
















S, 






«o 6 V^ 


i*S 








V w » y 




^ 


^ 

















100 



1,000 



PLAN VIEW AREA, square meters 



5.2.1.9.10. Stope preparation 
VERTICAL CRATER RETREAT 



527 

5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.2. MINING 

5.2.2.1.1. BLOCK CAVING 

GRAVITY METHOD 

Pure gravity block caving methods are best used when the ore is well fractured, and 
will break into fragments small enough to flow through a draw system without signi- 
ficant blockage. Productivity varies from 115 to 302 mt per worker-shift. Only the 
drawing of the ore during actual production is accounted for. Construction of griz- 
zly drifts, crosscut drifts, panel drifts, and draw raises, as well as cave induc- 
tion, re included in the stope preparation curves. Haulage of the ore from the 
stopes is covered in the haulage curves. Costs derived from the block caving curves 
apply to both block and panel caving methods. 

The total daily cost is the sum of the three separate cost curves (labor, supplies, 
and equipment operation) based on a production rate (X), in metric tons of ore and 
waste per day. The curves are valid for operations between 2,500 and 40,000 mtpd, 
operating two shifts per day. Cost per metric ton of ore is calculated by dividing 
the total cost per day by the metric tons of ore produced per day. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 15. 726(X) * 671 

The operating labor costs are distributed as follows: 

Direct labor 100% 

Maintenance labor 0% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 
per hour 
(base rate) 
Hangup Workers 100% $18.31 

Average wage for labor is $18.31 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Cost (Y s ) = 0.426(X) * 901 

The supply cost consists of 37% blasting agent, 8% caps, 50% miscellaneous 
items, and 5% contingency. Supplies include blasting agent, caps, and miscel- 
laneous items used for secondary blasting and supplemental drift support. 

(E) Equipment Operating Cost (Y E ) = 0.049 (X) ' 745 

The equipment operating cost consists of 94% for maintenance and overhaul parts 
and 6% for lubrication. Equipment for gravity block caving consists only of 
jackleg drills used to assist in secondary blasting. 



528 



Underground Mining— Operating Costs 



100,000 



10,000 



5S 

a 
■a 

L. 

a) 
a. 



o 1,000 



o 

T3 



CO 
O 

o 



100 



10 



■= 


: = — zrr 
















Y L - 15.726(X) U ' 

, 0.901 ■ 
Y s = 0.426(X) 

, ,0.745" 
Y E = 0.049(X) 

■2,500 <X< 40,000" 
















































r —"^^ 










\J& 
















































^ 






& 


1*^ 
















^ 
















^^^ 






































~* 
















































t&* 


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5^ 


















^ 



















1,000 10,000 

ORE AND WASTE, metric tons per day 

5.2.2.1.1. Block caving 
GRAVITY METHOD 



100,000 



529 

5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.2. MINING 

5.2.2.1.2. BLOCK CAVING 

LOAD-HAUL-DUMP METHOD 

LHD block caving methods are used when the ore is not well fractured, but will cave. 
The ore often breaks into fragments too large to be handled by slushers, and secon- 
dary blasting can be excessive. Haul length for the LHD units is estimated at 100 
m. Productivity varies from 67 to 160 mt per worker-shift. Only the drawing of the 
ore during actual production is accounted. Construction of grizzly drifts, LHD 
drifts, panel drifts, and draw raises, as well as cave induction, are included in 
the stope preparation curves. Haulage of the ore from LHD-fed production chutes is 
covered in the haulage curves. Costs derived from the block caving curves apply to 
both block and panel caving methods. 

The total daily cost is the sum of the three separate cost curves (labor, supplies, 
and equipment operation) based on a production rate (X), in metric tons of ore and 
waste per day. The curves are valid for operations between 2,500 and 40,000 mtpd, 
operating two shifts per day. Cost per metric ton of ore is calculated by dividing 
the total cost per day by the metric tons of ore produced per day. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 22.650(X) ' 692 

The operating labor costs are distributed as follows: 

Direct labor 93% 

Maintenance labor 7% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(2,500 to (21,250 to per hour 

21,250 mtpd) 40,000 mtpd) (base rate) 

Hangup workers 78% 88% $18.31 

LHD operators 22% 12% $16.53 

Average wage for labor is $18.06 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Cost (Y s ) = 2.161(X) ' 943 

The supply cost consists of 72% blasting agent, 17% caps, 6% miscellaneous 
items, and 5% contingency. Supplies include blasting agent, caps, and miscel- 
laneous items used for secondary blasting and supplemental drift support. 

(E) Equipment Operating Cost (Y E ) = 0.935(X) * 860 

The equipment operating cost consists of 49% for maintenance and overhaul parts, 
28% for tires, 18% for fuel, and 5% for lubrication. The equipment curve covers 
maintenance and overhaul parts, fuel, tires, and lubrication. The equipment 



530 



used in LHD block caving includes LHD units for intermediate ore handling, and 
jackleg drills for secondary blasting. 



531 



Underground Mining— Operating Costs 



100,000 



a 
•o 

© 

Q. 

m 
o 
"6 

"O 



o 
o 



10,000 



1,000 



100 























































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*y 






^ 




















& 


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-J^- 












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r dfy^ 














^ 


S> \r 
















/ 










692 - 
Y L = 22.650(X) ' 

Y S = 2,61(X)°- 943 - 

Y E = 0.935(X)°- 86 ° 
2,500 < X < 40,000 




















































i iii 



1,000 10,000 

ORE AND WASTE, metric tons per day 

5.2.2.1.2. Block caving 
LH.D. METHOD 



100,000 



532 

5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.2. MINING 

5.2.2.1.3. BLOCK CAVING 

SLUSHER METHOD 



Slusher block caving methods are used when the ore is reasonably well fractured and 
breaks into fragments that can be handled by slushers. Productivity varies from 70 
to 181 mt per worker-shift. Only the drawing of the ore during actual production is 
accounted. Construction of grizzly drifts, slusher drifts, panel drifts, and draw 
raises, as well as cave induction, are included in the stope preparation curves. 
Haulage of the ore from the stopes is covered in the haulage curves. Costs derived 
from the block caving curves apply to both block and panel caving methods. 

The total daily cost is the sum of the three separate cost curves (labor, supplies, 
and equipment operation) based on a production rate (X), in metric tons of ore and 
waste per day. The curves are valid for operations between 2,500 and 40,000 mtpd, 
operating two shifts per day. Cost per metric ton of ore is calculated by dividing 
the total cost per day by the metric tons of ore produced per day. 

Base curves 

(L) Labor Operating Cost (Y L ) = 23.197 (X) ' 681 

The operating labor costs are distributed as follows: 

Direct labor 95% 

Maintenance labor 5% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(2,500 to (21,250 to per hour 

21,500 mtpd) 40,000 mtpd) (base rate) 

Hangup workers 68% 79% $18.31 

Slusher operators 32% 21% 16.53 

Average wage for labor is $17.90 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Cost (Y s ) = 1.147 (X) * 938 

The supply cost consists of 67% blasting agent, 15% caps, 13% miscellaneous 
items, and 5% contingency. Supplies include blasting agent, caps, and miscel- 
laneous items used for secondary blasting and supplemental drift support. 

(E) Equipment Operating Cost (Y E ) = 1.134(X) * 766 

Tae equipment operating cost consists of 55% for maintenance and overhaul parts, 
39% for electricity, and 6% for lubrication. The equipment used in slusher 
block caving includes slushers for inter- mediate ore handling, and jackleg 
drills for secondary blasting. 



533 



Underground Mining— Operating Costs 



100,000 



o 

i_ 
O 

a 
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L. 

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10,000 



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100 











































































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vi 


r 






Y L =23.197(X) ' 681 ■ 
Y S = 1.147(X) a938 - 
Y E = 1.134(X)°- 766 
















^ 


































^ 


!,500 <X 


< 4 
, 1 


0,00 

.. ., 






1,000 10,000 

ORE AND WASTE, metric tons per day 

5.2.2.1.3. Block caving 
SLUSHER METHOD 



100,000 



534 

5.2. UNDERGROUND MINING—OPERATING COSTS 

5.2.2. MINING 

5.2.2.2. CONTINUOUS MINING 

The continuous miner curve is based on using continuous miners, shuttle cars, and 
rock bolters. Production rates average 100 mt per worker-shift. Only the cutting 
of the ore and haulage by shuttle car to a nearby conveyor loading point (approxi- 
mately 100 m) are covered by the curve. Haulage by conveyor and other services are 
covered in other curve sections. 

The total daily cost per day is the sum of the three separate cost curves (labor, 
supplies, and equipment operation) based on a production rate (X), in metric tons of 
ore and waste per day. The curves are valid for operations between 2,000 and 30,000 
mtpd, operating two shifts per day. The cost per metric ton is calculated by 
dividing the total cost per day by the metric tons of ore produced per day. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 0.464(X) ' 975 

The operating labor costs are distributed as follows: 

Direct labor 49% 

Maintenance labor 51% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 
per hour 
(base rate) 
Miners 100% $18.31 

Average wage for labor is $18.31 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Cost (Y s ) = 0. 718 (X) * 989 

The supply cost consists of 95% steel items and 5% tires. Supplies include 
cutter bits, tires, and rockbolts. 

(E) Equipment Operating Cost (Yg) = 0.130(X) 1 * 000 

The equipment cost consists of 85% for repair parts and 15% for fuel and lubri- 
cation. The equipment operating curve covers repair parts, fuel, and lubrica- 
tion for the continuous miners, shuttle cars, and rock bolters. 

ADJUSTMENT FACTOR 

Rock Hardness Factor Continuous mining productivity is related to rock hardness. 
If the compressive strength of the rock is known, or an estimate can be made 
from table A-l in the appendix, multiply the costs obtained from the equations 
by the following factors (base rock strength = 31,700 psi): 



535 

Labor factor (F L ) = 0.388(C) * 093 

Supply factor (F s ) = 0.579(C) ' 054 

Equipment operation factor (F E ) = 0.715(C) * 033 

where C = compressive rock strength, in pounds per square inch. 






Underground Mining— Operating Costs 



100,000 



o 10,000 

"O 



0) 

a. 

V) 

L. 

o 
"o 



8 1.000 



100 

















































































































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V L = 0.464(X) 

r s = o.7i8(x) a989 - 
r E =o.i30(x) 1 - 000 
















/ 






















£ 

2,000 <X 

i 


< 31 


3,00 






1,000 10,000 

ORE AND WASTE, metric tons per day 

5.2.2.2. Continuous mining 



100,000 



537 
5.2. UNDERGROUND MINING— OPERATING COSTS 
5.2.2. MINING 
5.2.2.3. CUT AND FILL 

The cut -arid-fill stope curve is based on using jacklegs for drilling and rock 
bolting. Costs include excavation of the ore, slushing to chutes, and sandfill 
operations including chute and manway extensions. Production rates vary from 6 to 
12 mt per worker-shift. Only the drilling and blasting of ore during actual produc- 
tion are accounted for in this curve. Access drift construction and service instal- 
lation are covered in the stope preparation curve. Haulage and other services are 
covered in separate sections. 

The total daily cost per day is the sum of the three separate cost curves (labor, 
supplies, and equipment operation) based on a production rate (X), in metric tons of 
ore and waste per day. The curves are valid for operations between 100 and 8,000 
mtpd, operating two shifts per day. Cost per metric ton of ore is calculated by 
dividing the total cost per day by the metric tons of ore produced per day. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 49. 858 (X) * 858 

The operating labor costs are distributed as follows: 

Direct labor 98% 

Maintenance labor 2% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Miners 80% $18.31 

Helpers 20% 13.86 

Average wage for labor is $17.42 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Cost (Y s ) = 7.970(X) ' 976 

The supply cost consists of 26% explosives, 24% steel items, 32% timber, and 18% 
miscellaneous items. Supplies include drill bits and steel, powder, caps, 
timber, sandfill, and rockbolts. 

(E) Equipment Operating Cost (Y E ) = 0.585(X) 0,974 

The equipment operating cost consists of 92% for repair parts and 8% for lubri- 
cation. The equipment operating curve covers daily maintenance and repair, 
repair parts, and lubrication for the jacklegs, slushers, and tuggers. 

ADJUSTMENT FACTORS 

Rock Hardness Factor Cut-and-fill mining costs are related to rock hardness. If 
the compressive strength of the rock is known, or an estimate can be made from 



538 

table A-l in the appendix, multiply the costs obtained from the equations by the 
following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) - 0.403(C) ' 090 

Supply factor (F s ) = 0.590(C) * 052 

Equipment operation factor (F E ) = 0.716(C) 0,033 

where C = compressive rock strength, in pounds per square inch. 

Width Factor The curve is based on a stope 1.83 m wide with varying lengths. For 
stopes from 1.0 to 6.1 m wide, multiply the costs obtained from the curves by 
the following factor: 

Width factor (F w ) = 1.205(W)-°* 315 
where W = width of stope, in meters. 



539 



Underground Mining— Operating Costs 



1,000,000 



100,000 



O 



fc 10,000 



0) 

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, ,0.858 
Y L = 49.858(X) 

0.976 
Y s = 7.970(X) : 

, x 0.974 - 
Y £ = 0.585(X) 

100 <X< 8,000 














^ 
























•^ 






































i iii 



100 1,000 

ORE AND WASTE, metric tons per day 

5.2.2.3. Cut and fill 



10,000 



540 

5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.2. MINING 

5.2.2.4. LONGHOLE 



The cost curves are based on longhole stope mining using deephole ring drills for 
all drilling, and LHD units for drawing broken ore from a series of draw points. 
Costs for mining vein widths of 3.5 m and wider can be determined using these 
curves. Narrow or irregular veins usually do not avail themselves to longhole 
methods. The curves cover a production range of 350 to 10,000 mtpd. Average haul 
distance to a central conveyance point is estimated at 100 m. Production rates vary 
from 60.6 to 94.5 mt per worker-shift. Only the drilling, blasting, and drawing of 
the ore during actual production are accounted. Construction of drawpoints, haul- 
ageways, sublevels, and access raises are included in the stope preparation curves. 

The total daily cost per day is the sum of the three separate cost curves (labor, 
supplies and equipment operation) based on a production rate (X), in metric tons of 
ore and waste per day. The curves are valid for operations between 350 and 10,000 
mtpd, operating two shifts per day. Cost per metric ton of ore is calculated by 
dividing the total cost per day by the metric tons of ore produced per day. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 4.922(X) ' 877 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



92% 
8% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(350 to (5,175 to per hour 

5,175 mtpd) 10,000 mtpd) (base rate) 

Miners 33% 44% $18.31 

Helpers 33% 44% 13.86 

Production loaders 33% 8% 16.53 

Average wage for labor is $16.15 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Cost (Y s ) = 0.764(X) ' 973 

The supply cost consists of 40% blasting materials, 37% drill bits and steel, 
14% miscellaneous items, and 9% contingency. Supplies include drill bits, 
steel, ANF0, primers, caps, detonation cord, and miscellaneous items. 

(E) Equipment Operating Cost (Y E ) = 0.316 (X) ' 976 

The equipment cost consists of 52% for maintenance and overhaul parts, 26% for 
tires, 17% for fuel, and 5% for lubrication. The equipment curve covers mainte- 
nance and overhaul parts, tires, fuel, and lubrication. Equipment for longhole 

stope raining includes LHD units, deep-hole drills, and ring drill carriers. 



541 

ADJUSTMENT FACTOR 

Rock Hardness Factor Longhole mining is related to rock hardness. If the compres- 
sive strength of the rock is known, or an estimate can be made from table A-l in 
the appendix, multiply the costs obtained from the equations by the following 
factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) ' 093 

Supply factor (F s ) = 0.579(C) ' 054 

Equipment operation factor (F E ) = 0.716(C) ' 033 

where C = compressive rock strength, in pounds per square inch. 



542 



Underground Mining— Operating Costs 



100,000 



10,000 



o 

T3 

u. 
O 

a. 

| 1.000 

"o 

-o 



CO 

o 
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100 



10 





































































































































InO* -""' 


















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Y L = 4.922(X) 

Y s = 0.764(X)°' 973 : 

Y E = 0.316(X) a976 






























































350 <X 

«- 


< u 

i 


).00( 


D 

— ' 



100 1,000 

ORE AND WASTE, metric tons per day 

5.2.2.4. Longhole 



10,000 



543 
5.2. UNDERGROUND MINING— OPERATING COSTS 
5.2.2. MINING 
5.2.2.5. RESUING 



Resuing is a method of stoping in which the ore is broken and removed first and then 
the waste or vice versa; usually the one, that breaks easier is blasted first. The 
broken waste is left in stope as filling and the ore is broken down on flooring laid 
on the fill to prevent mixing of ore and waste. Resuing is applicable where the ore 
is not frozen to the stope walls and works best if there is considerable difference 
between the hardness of the ore and the wall rocks. The methods is labor intensive 
and is rarely practiced in North America except in very high-grade narrow vein-type 
deposits of higher economic values. The productivity in the stopes using a resuing 
method of stoping is generally low when compared with other methods of mining. 

Productivity varies from 1.7 to 4.2 mt per worker shift in the stope. The average 
vein width considered for 20- 200- and 400-mtpd operation is 0.46 m (18 in), 0.61 m 
(24 in) and 0.76 m (30 in) respectively. The minimum stoping width assumed is 1.2 m 
(4.0 ft). Only the drawing of the ore during actual production, with partial draw- 
ing of waste when required, is accounted. 

The total daily cost is the sum of the three separate cost curves (labor, supplies, 
and equipment operation) based on a production rate (X), in metric tons of ore per 
day. The curves are valid for operations between 20 and 450 mt, operating two 
shifts per day, 5 days a week. Cost per metric ton of ore is calculated by dividing 
the total cost per day by the metric tons of ore produced per day. 

Base Curves 

(L) Labor Operating Cost (Y L ) = 219.542(X) * 695 

The operating labor costs are distributed as follows: 

Direct labor 96% 

Maintenance labor 4% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Miners 50% $18.31 

Slusher operators 50% 16.53 

Average wage for labor is $17.42 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Cost (Y s ) - 12.157 (X) 1 * 050 

The supply cost consists of 21% powder, 21% caps, 15% rockbolts, 33% timber, and 
10% miscellaneous items. Supplies include powder and caps for blasting, rock- 
bolts and timber for ground support, and miscellaneous items such as blasting 
wires, hangers, small tools, and material waste. 



544 

(E) Equipment Operating Cost (Y E ) = 0.866 (X) * 823 

The equipment operating curve consists of 80% for maintenance and repair parts 
for slushers, 12% for jacklegs, and 8% for lubricants. 

ADJUSTMENT FACTOR 

Rock Hardness Factor Resuing mining costs are related to rock hardness. If the 

compressive strength of the rock is known, or an estimate can be made from table 
A-l in the appendix, multiply the costs obtained from the equations by the fol- 
lowing factors (base rock strength = 31,700 psi): 

Labor factor (F L ) - 0.403(C) * 090 

Supplies factor (F s ) = 0.590(C) * 052 

Equipment operation factor (F E ) = 0.716(C) 0,033 

where C = compressive rock strength, in pounds per square inch. 



54 5 



Underground Mining— Operating Costs 



100,000 



10,000 



O 

•a 



© 
o. 



| 1,000 

"o 
-o 



in 
o 
o 



100 



10 





- 3 




















■ Y L = 219.542(X) 

, J. 050 
Y s = 12.157(X) 

. x 0.823 
Y E = 0.866(X) 

20 <X< 450 








































































V 


0^5-^" 






































$ 


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10 



100 
ORE, metric tons per day 

5.2.2.5. Resuing 



1,000 



546 

5.2. UNDERGROUND MINING—OPERATING COSTS 

5.2.2. MINING 

5.2.2.6. ROOM AND PILLAR 

MEDIUM TO HARD ROCK 



The cost curves are based on room and pillar mining using jumbo-mounted drifters for 
all drilling, and front-end loaders for transferring broken ore to rubber-tired 
haulage trucks at the face. Production rates vary from 82 to 99 mt per worker- 
shift. Only the drilling, blasting, and loading of the ore during actual production 
are accounted. Access drift construction and service installation are included in 
the stope preparation curves. 

The total cost per day is the sum of the three separate cost curves (labor, supplies 
and equipment operation) based on a production rate (X), in metric tons of ore and 
waste per day. The curves are valid for operations between 1,500 and 8,000 mt, 
operating two shifts per day. Cost per metric ton of ore is calculated by dividing 
the total cost per day by the metric tons of ore produced per day. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 4.074(X) 0,875 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



98% 
2% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(1,500 to (4,750 to per hour 

4,750 mtpd) 8,000 mtpd) (base rate) 

Miners 36% 41% $18.31 

Helpers 36% 41% 13.86 

Utility workers 18% 12% 16.07 

Loader operators 10% 6% 16. 49 

Average wage for labor is $15.95 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Cost (Y s ) = 2. 572 (X) ' 863 

The supply cost consists of 48% blasting supplies, 26% drill bits and steel, 13% 
rock support materials, 8% miscellaneous items, and 5% contingency. Supplies 
necessary for medium to hard rock room and pillar mining include drill bits and 
steel, blasting agent, caps, rockbolts, and miscellaneous items. 

(E) Equipment Operating Cost (Y E ) = 0.079 (X) * 967 

The equipment operating cost consists of 54% for maintenance and overhaul parts, 
26% for fuel, 12% for tires, and 8% for lubrication. The equipment curve covers 
maintenance and overhaul parts, fuel, tires, and lubrication. Equipment for 
medium to hard rock room and pillar mining includes jumbo-mounted drifters, 
front-end loaders, air leg drills, and powder buggies. 



547 

ADJUSTMENT FACTORS 

Rock Hardness Factor Room and pillar mining costs are related to rock hardness. 
If the compressive strength of the rock is known, or an estimate can be made 
from table A-l in the appendix, multiply the costs obtained from the equations 
by the following factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) * 093 

Supply factor (F s ) = 0.579(C) ' 054 

Equipment operation factor (F E ) = 0.715(C) * 033 

where C = compressive rock strength, in pounds per square inch. 

Bench Factor If the ore body is of sufficient thickness that a second pass 

can be bench drilled, multiply the costs obtained from the room and pillar 
mining equations by the following factors: 

Labor factor (F L ) = 0.872(X) * 020 

Supply factor (Fs) = 0.910 

Equipment operation factor (F E ) = 1.498 (X)~ 0,013 
where X = ore and waste mined, in metric tons per day. 

These factors will account for the addition of airtrack drills, the labor 
needed for operation and repair, and the reduction of explosives associated 
with more efficient blasting methods. These factors are based on the 
assumption that 50% of all ore is extracted by bench drilling and blasting. 



548 



100,000 



o 
•o 



© 

Q. 



o 1,000 



o 

I-* 

o 

o 



100 



10 



Underground Mining— Operating Costs 



10,000 ■ 



, u 

, N 0.875 










Y L = 4-.074(X) 

, % 0.863 
Y s = 2.572(X) 

. ,0.967 
Y E = 0.079(X) 

■ 1,500 <X< 8,0nn 


































\ Q^ 0f 












uVJ; " 










^^^ su?p)!! 


^~-^"^ 








































Ui^ 








mm**£A 








t-M ^^_^»" 



























































1,000 



10,000 



ORE AND WASTE, metric tons per day 
5.2.2.6. Room and pillar— medium to hard rock 



549 



5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.2. MINING 

5.2.2.7. ROOM AND PILLAR 

NONMETALLIC SOFT ROCK 



The cost curves are based on room and pillar mining using jumbo-mounted drifters for 
all drilling, and LHD units, or continuous loaders with shuttle cars, for handling 
broken ore. The average haul length to an access conveyor is estimated at 100 m. 
Production rates vary from 102 to 136 mt per worker-shift. Only the drilling, 
blasting, loading, and hauling of the ore to an access conveyor during actual pro- 
duction are accounted. Service and conveyor installation and access drift construc- 
tion are included in the stope preparation curves. 

The total cost per day is the sum of the three separate cost curves (labor, 
supplies, and equipment operation) based on a production rate (X), in metric tons of 
ore and waste per day. The curves are valid for operations between 800 and 9,500 
mtpd, operating two shifts per day. Cost per metric ton of ore is calculated by 
dividing the total cost per day by the metric tons of ore produced per day. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 3.186 (X) ' 894 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



87% 
13% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small Large Av salary 

(800 to (5,150 to per hour 

5,150 mtpd) 9,500 mtpd) (base rate) 

Miners 38% 38% $18.27 

Loader operators 38% 25% 13 . 50 

Motor operators - 25% 16.06 

Utility workers 24% 12% 16.06 

Average wage for labor is $17.01 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Cost (Yg) = 0.936 (X) * 991 

The supply cost consists of 26% drill bits and steel, 25% blasting supplies, 24% 
rock support materials, 12% electricity, 8% miscellaneous items, and 5% contin- 
gency. Supplies necessary for nonmetallic room and pillar mining include drill 
bits and steel, blasting agent, caps, rockbolts, electricity, and miscellaneous 
items. 

(E) Equipment Operating Cost (Y E ) = 2.159 (X)°- 723 

The equipment operating cost consists of 68% for maintenance and overhaul parts, 

18% for tires, 11% for lubrication, and 3% for fuel. The equipment curve covers 



550 

maintenance and overhaul parts, fuel, tires, and lubrication. Equipment for 
nonmetallic room and pillar mining includes jumbo-mounted drifters, roof 
bolters, powder buggies, undercutters, LHD's or continuous loaders with shuttle 
cars, and transformers. 

ADJUSTMENT FACTOR 

Rock Hardness Factor Room and pillar mining costs are related to rock hardness. If 
the compressive strength of the rock is known, or an estimate can be made from 
table A-l in the appendix, multiply the costs obtained from the equations by the 
following factors (base rock strength ■ 31,700 psi): 

Labor factor (F L ) = 0.388(C) ' 093 

Supply factor (F s ) - 0.579(C) * 054 

Equipment operation factor (F E ) = 0.715(C) 0,033 

where C = compressive rock strength, in pounds per square inch. 



551 



Underground Mining— Operating Costs 



100,000 



a 1 0,000 



O 

a. 



| 

o 
■o 



O 1,000 
o 



100 



I I 














, N 0.894 
- Y L = 3.186(X) 

, ,0.991 
Y s = 0.936(X) 

. x 0.723 
Y E = 2.159(X) 

800 <X< 9,500 




























































/ / 






































v-iO^ ^ 




s 












V 






















S^\ 












s 


/ 


v oVSd 


-" 












s 


















^y 













































100 1,000 

ORE AND WASTE, metric tons per day 

5.2.2.7. Room and pillar— nonmetaliic soft rock 



10,000 



552 

5.2. UNDERGROUND MINING—OPERATING COSTS 
5.2.2. MINING 
5.2.2.8. SHRINKAGE 

The shrinkage stope curve is based on using stopers for drilling and jacklegs for 
rock bolting. Production rates vary from 3 to 10 mt per worker-shift. Only the 
drilling and blasting of ore during actual production are accounted for in this 
curve. Access drift construction and service installation are covered in the stope 
preparation curve. Haulage and other services are covered in separate sections. 

The total cost per day is the sum of the three separate cost curves (labor, sup- 
plies, and equipment operation) based on a production rate (X), in metric tons of 
ore and waste per day. The curves are valid for operations between 100 and 4,000 
mt, operating two shifts per day. Cost per metric ton of ore is calculated by divi- 
ding the total cost per day by the metric tons of ore produced per day. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 39.395(X) ' 895 

The operating labor costs are distributed as follows: 

Direct labor 99.8% 

Maintenance labor 0.2% 

The operating labor costs are based on straight days pay and consist of the fol- 
lowing typical range of personnel: 

Av salary 

per hour 
(base rate) 

Miners 67% $18.31 

Helpers 33% 13.86 

Average wage for labor is $16.84 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Cost (Y s ) = 3.549 (X) ' 987 

The supply cost consists of 25% explosives, 48% steel items, 22% timber, and 5% 
miscellaneous items. Supplies include drill bits and steel, powder, caps, 
timber, and rockbolts. 

(E) Equipment Operating Cost (Y E ) = 0.086 (X) * 894 

The equipment operating cost consists of 93% for repair parts and 7% for lubri- 
cation. The equipment operating curve covers daily maintenance and repair, 
repair parts, and lubrication for the stopers and jacklegs. 

ADJUSTMENT FACTORS 

Rock Hardness Factor Shrinkage mining costs are related to rock hardness. If the 
compressive strength of the rock is known, or an estimate can be made from table 
A-l in the appendix, multiply the costs obtained from the equations by the fol- 
lowing factors (base rock strength ■ 31,700 psi): 



553 

Labor factor (F L ) = 0.399(C) * 091 

Supply factor (F s ) = 0.585(C) ' 053 

Equipment operation factor (F E ) = 0.717(C) 0,033 

where C = compressive rock strength, in pounds per square inch. 

Width Factor The curve is based on a stope 1.83 m wide with varying lengths. For 
stopes from 1.0 to 6.1 m wide, multiply the costs obtained from the curves by 
the following factor: 

Width factor (F w ) = 1.353(W) -0 ' 500 
where W = stope width, in meters. 



554 



100,000 



10,000 



o 

■o 

£ 1,000 
a. 

n 

L. 

o 
o 



100 



V) 

O 
o 



10 







Ur 


iden 


3 ro 


und 


Mining— Operating Costs 




































































^ 


















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^^ 










^^ 




c 


>^ 


IV, 


































^^"~ 






































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^^~ 


















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v C 


JO**;: 














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a*jS 


5^1 






, 0.895 
Y L = 39.395(X) 

0.987 
Y s = 3.549(X) : 

, 0.894 " 
Y E = 0.086(X) 

100 <X< 4,000 


























^^ 












— ^ 






































i iii 



100 1,000 

ORE AND WASTE, metric tons per day 

5.2.2.8. Shrinkage 



10,000 



555 
5.2. UNDERGROUND MINING— OPERATING COSTS 
5.2.2. MINING 
5.2.2.9. SQUARE SET 

The square set stope curve is based on using jacklegs for drilling and rock bolting. 
Costs include excavation of the ore, slushing to chutes, and timber installation in- 
cluding chute and manway extensions. Production rates vary from 4 to 8 mt per work- 
er-shift. Only the drilling and blasting of ore during actual production are ac- 
counted for in this curve. Access drift construction and service installation are 
covered in the stope preparation curve. Haulage and other services are covered in 
separate sections. 

The total cost per day is the sum of the three separate cost curves (labor, sup- 
plies, and equipment operation) based on a production rate (X), in metric tons of 
ore and waste per day. The curves are valid for operations between 20 and 200 mt, 
operating two shifts per day. Cost per metric ton of ore is calculated by dividing 
the total cost per day by the metric tons of ore produced per day. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 60.332(X) ' 839 

The operating labor costs are distributed as follows: 

Direct labor 99% 

Maintenance labor 1% 

The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Av salary 
per hour 
(base rate) 
Miners 100% $18.31 

Average wage for labor is $18.31 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Cost (Y s ) = 13.246(X) * 890 

The supply cost consists of 22% explosives, 13% steel items, 59% timber, and 6% 
miscellaneous items. Supplies include drill bits and steel, powder, caps, 
timber, and rockbolts. 

(E) Equipment Operating Cost (Y E ) = 0.750(X) ' 902 

The equipment operating cost consists of 92% for repair parts and 8% for lubri- 
cation. The equipment operating curve covers daily maintenance and repair, 
repair parts, and lubrication for the jacklegs, slushers, and tuggers. 

ADJUSTMENT FACTORS 

Rock Hardness Factor Square set mining costs are related to rock hardness. If the 
compressive strength of the rock is known, or an estimate can be made from table 



556 

A-l in the appendix, multiply the costs obtained from the equations by the fol- 
lowing factors (base rock strength = 31,700 psl): 

Labor factor (F L ) = 0.403(C) ' 090 

Supply factor (F s ) = 0.590(C) ' 052 

Equipment operation factor (F E ) = 0.716(C) 0,033 

where C = compressive rock strength, in pounds per square inch. 

Width Factor The curve is based on a stope 7.2 m wide with varying lengths. 

For stopes from 1.0 to 7.2 m wide, multiply each curve value by the following 
factor: 

Width factor (F w ) = 1. 50(W) -0 ' 205 
where W = stope width, in meters. 



557 



Underground Mining— Operating Costs 



10,000 



o 
■o 

v_ 
O 

a. 
n 

"5 
■a 

h-" 

O 
O 



1,000 



100 



10 



































































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s 












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J* 


















<3* 


s 




































-r* 




























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* 


























<<* 


>°y 


, ,0.839. 
Y L = 60.332(X) 

Y S =13.2«(X)°- 890 ' 

, ,0.902 
Y E = 0.750(X) 

20 <X< 200 








< 


y 






<% 


f 










/ 










i iii 



10 



100 
ORE AND WASTE, metric tons per day 

5.2.2.9. Square set 



1,000 



558 

5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.2. MINING 

5.2.2.10. VERTICAL CRATER RETREAT 



The cost curves are based on VCR stope mining using down-hole drills for all dril- 
ling, and LHD units for drawing broken ore. The curves apply to any mining system 
in which large-diameter blastholes are loaded from the top sill, and ore is blasted 
into an undercut. This includes vertical crater retreat, vertical retreat mining, 
and end slicing to a drop raise. Average haul distance to a central conveyance 
point (truck loading station, ore pass, or underground crushing station) is esti- 
mated at 200 m. Production rates vary from 107 to 200 mt per worker-shift. Only 
the drilling, blasting, and drawing of the ore during actual production are account- 
ed. Construction of drawpoints, top sill cuts, bottom sill cuts, and access drifts 
are included in the stope preparation curves. 

The total cost per day is the sum of the three separate cost curves (labor, sup- 
plies and equipment operation) based on a production rate (X), in metric tons of ore 
and waste per day. The curves are valid for operations between 650 and 4,000 mt, 
operating two shifts per day. Cost per metric ton of ore is calculated by dividing 
the total cost per day by the metric tons of ore produced per day. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 23.075(X) * 595 

The operating labor costs are distributed as follows: 



(S) 



Direct labor 

Maintenance labor. 



87% 
13% 



The operating labor costs are based on straight days pay and consist of the 
following typical range of personnel: 

Small 

(650 to 

2,975 mtpd) 

Drillers (miners) 14% 

Helpers 14% 

Blasters (miners) 29% 

LHD operators 29% 

Lead blaster 14% 

Average wage for labor is $16.93 per worker-hour (including burden and average 
shift differential). 

Supply Operating Cost (Y s ) = 2.152 (X)°* 947 

The supply cost consists of 69% blasting supplies, 13% drill bits and steel, 9% 
miscellaneous items, and 9% contingency. Supplies necessary for VCR mining in- 
clude drill bits, drill steel, blasting agent, primers, caps, detonation cord, 
caristrap, timber, and miscellaneous items. 



Large 




Av salary 


(2,975 


to 


per hour 


4,000 mt 


pd) 


(base rate) 


21% 




$18.27 


21% 




13.82 


42% 




18.35 


11% 




16.50 


5% 




15.11 



559 

(E) Equipment Operating Cost (Y E ) = 1.502(X) * 792 

The equipment operating cost consists of 44% for maintenance and overhaul parts, 
33% for fuel, 16% for tires, and 7% for lubrication. The equipment curve covers 
maintenance and overhaul parts, fuel, tires, and lubrication. Equipment for VCR 
stope mining includes down -hole drills, air track drill carriers, booster com- 
pressors, LHD units, and bit grinders. 

ADJUSTMENT FACTORS 

Rock Hardness Factor VCR productivity is related to rock hardness. If the com- 
pressive strength of the rock is known, or an estimate can be made from table 
A-l in the appendix, multiply the costs obtained from the equations by the fol- 
lowing factors (base rock strength = 31,700 psi): 

Labor factor (F L ) = 0.388(C) ' 093 

Supply factor (F s ) = 0.579(C) * 054 

Equipment operation factor (F E ) = 0.716(C) 0,033 

where C ■ compressive rock strength, in pounds per square inch. 

Backfilled Stope Factor If stopes are to be backfilled, multiply the labor and sup- 
ply costs obtained from the VCR stope mining curves by the following factors: 

Labor factor (F L ) = 0.863(X)°« 030 

Supply factor (F s ) = 1.635(X) ' 027 

where X = metric tons of ore and waste mined per day. 

These factors will account for the additional labor needed for backfill opera- 
tions, and the material needed for fill. 



553 



Underground Mining— Operating Costs 



10,000 



>» 

o 
■o 

v_ 

a. 



o 



O 
O 



1,000 



100 



I I I 














, x 0.595 
Y L = 23.075(X) 

, N 0-947 
Y s = 2.152(X) 

, . 0.792 
Y E = 1.502(X) 

650 <X< 4,000 






































<o/ 
















? 


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0< 














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i 




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100 



1,000 
ORE AND WASTE, metric tons per day 

5.2.2.10. Vertical crater retreat 



10,000 



561 

5.2. UNDERGROUND MINING— OPERATING COSTS 
5.2.3. MINE HAULAGE 
5.2.3.1. HOISTING 

Mine hoist operating costs, as determined in this section, are based on metric tons 
of ore and waste hoisted per hour from a specific depth on a two-shif t-per-day sche- 
dule. When analyzing the hoisting system, the estimator should consider the follow- 
ing: 

1. Double-drum hoists are applicable to multilevel hoisting for all sizes of 
mines . 

2. Friction hoists are applicable for deep level (+915 m) and/or single level 
hoisting. 

3. Mines that hoist over 4,000 mtpd often have more than one hoist (i.e., one 
hoist may haul ore and waste and one hoist may be used for servicing the mine). The 
costs are only applicable for one hoist. If more than one hoist is required, recal- 
culate the curve(s) for each additional hoist (see ADJUSTMENTS for service hoists). 

4. Mines that hoist over 20,000 mtpd typically have more than one production 
hoist in conjunction with at least one service hoist. 

5. In choosing the hoisting system it is best to remember that these facilities 
are usually designed for a higher capacity than required. This is especially true 
for smaller mines or mines anticipating an increase in capacity (i.e., a hoist oper- 
ating at 100 mtph may have a design capacity of 200 mtph) . 

6. Single hoist mines typical hoist muck for about 80% of the daily schedule 
(i.e., 13 h of a 16-h work day), the remaining 20% of the schedule is devoted to 
transporting personnel and supplies and performing maintenance. Mines serviced by 
more than one production hoist typically hoist muck about 90% of the daily schedule. 

The curves show costs for double-drum and friction hoists and are based on hoisting 
from 914 m (3,000 ft). 

The total cost per hour is the sum of the three separate cost curves (labor, sup- 
plies, and equipment operation) based on hoist capacity (X) , in metric tons mater- 
ial, per hour. The curves are valid for operations between 100 and 800 mt , operat- 
ing two shifts per day. The total cost per day is the sum of the equipment opera- 
tion, labor, and supply curves multiplied by the number of hours of operation daily. 

BASE CURVES 

(L) Labor Operating Costs (Y L DOUBLE-DRUM) = 860+[0.036(X) 1 - 000 ] 

< Y L FRICTION^ " 860+[0.031(X) - 990 ] 
The operating labor costs are distributed as follows: 

Direct labor 99% 

Maintenance labor 1% 

The operating labor costs are based on straight days pay and consist of the fol- 
lowing typical range of personnel: 



562 

Av salary 

per hour 
(base rate) 

Hoist operator 34% $18.67 

Cager 34% 18.11 

Assistant cager 32% 16.33 

Average wage for labor is $17.54 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Costs (Y s DOUBLE-DRUM) = 5 - 28 °( X )?;" 4 

(Y S FRICTION) " 4.485(X)0-983 
The supply costs consists of 95% electric power and 5% wire rope replacement. 

(E) Equipment Operating Costs (Y E DOUBLE-DRUM^ = 0.036(X) 1 - 000 

(Y E friction) = 0.031(X)0'990 
The equipment operating cost consist of 80% for repair and maintenance parts and 
20% for lubrication. 

ADJUSTMENT FACTORS 

Depth Factor To determine operating costs for hoisting facilities whose maximum 
hoisting depth varies from 914 m (3,000 ft), multiply the costs obtained from 
the supply and equipment operation curves by the following factors: 

Double-drum hoist: 

Supply factor (Y s DOUBLE-DRUM) = 0.0009(D) 1 ' 032 

Equipment operation factor (Yg DOUBLE-DRUM) = 0.001(D)! .019 
where D = maximum hoisting depth from the surface, in meters. 

Friction hoist : 

Supply factor (Y s FRICTION) = 0.005(D) - 768 

Equipment operation factor (Yg FRICTION) = 0. 007(D )°« '29 
where: D = maximum hoisting depth from the surface, in meters. 

Shift Factor If hoists are operated one shift per day decrease costs 50%. If 
hoists are operated three shifts per day, increase costs 50%. 

Hoist Factor Under the following conditions multiply the labor cost obtained from 
the curves by the following factors: 

If a hoist is used for production hoisting only: 
Labor factor (F L ) = 0.69 

If a fully automatic hoist is used: 
Labor factor (F L ) = 0.71 

If a fully automatic hoist is used for production hoisting only: 
Labor factor (F L ) = 0.40 



563 



Use Factor If a hoist is used for service hoisting only, multiply the costs ob- 
tained from the supply and equipment curves by the following factors: 

Supply factor (Fg) = 0.33 

Equipment operation factor (Fg) ■ 0.33 



564 



Underground Mining— Operating Costs 



10,000 



1,000 



V- 

O 

-C 

a 
a. 

n 

_o 

"5 
-o 



if) 
O 
o 



100 - 



10 



































SU^-" 








^^"^ l nhnr 






rf^^ 




















-"^" 










Y L = 860+[0.036(X) 1 * 000 ] 

994 
- Y s = 5.280(X) 

"Y E - 0.036(X) 1 ' 000 

100 <X< 800 


















































wW"*^ 


5^ 


Or*^-*"*! 






t-M^vI!]— ■ — ■ 


















^^^^ 































100 



1,000 



MATERIAL, metric tons per hour 



5.2.3.1.a Hoisting 
DOUBLE-DRUM 



565 



Underground Mining— Operating Costs 



10.000 



1,000 



o 

-C 
u 

o 
a. 

n 

jo 

o 
•o 



CO 

o 
u 



100 - 



10 













































- — 1 nWi-* 


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^^~^ 






















, ,0.990. 
Y L = 860+[0.031(X) ] 

0.983 
Y s = 4.485(X) 

, v 0.990 
Y E = 0.031 (X) 

100<X<800 














































*inO 
















"o?<* 


qv.\ d; 








-^^nrn ent 










-\ap9^ 








^^ 





















100 



1,000 



MATERIAL, metric tons per hour 



5.2.3.1.b Hoisting 
FRICTION 



566 

5.2. UNDERGROUND MINING—OPERATING COSTS 

5.2.3. MINE HAULAGE 

5.2.3.5. CONVEYOR HAULAGE 

Cost estimates derived through this section depict the operating cost of fixed con- 
veyor systems underground. Typically the ore will be conveyed from an underground 
crusher installation to an ore pocket at a shaft station or to the surface through a 
portal. The base case assumes a haul distance of 300 m (980 ft) and that the con- 
veyor system is utilized two shifts each day. As it will invariably be necessary to 
adjust for the actual haul distance of the case under evaluation the distance factor 
formulas contained in the ADJUSTMENT FACTORS section should be consulted. They 
should be used as multipliers of computed labor and equipment operation values de- 
rived form the base curves. 

A factor is also provided to allow for adjustment of power requirements for other 
than horizontal workings. This factor should be employed if the grade is greater 
than 2%. At no time should conveying be considered at pitches greater than 17°. 

BASE CURVES 

The total daily cost is the sum of the three separate cost curves (labor, supplies, 
and equipment operation) based on a haulage rate (X), in metric tons of material 
conveyed per day. The curves are valid for operations between 100 and 50,000 mt, 
operating two shifts per day. Costs derived include all daily operating and main- 
tenance costs associated with the operation of the conveying system. The curves are 
based on a 300-m (980-ft) conveying distance. System capacities may vary from 363 
to 4,460 mt/h, utilizing belt widths of 610 to 1,829 mm. Because of practical limi- 
tations, lesser capacity systems would only be designed by limiting the operating 
period only and thus would be determined by proportion of the time employed. 

(L) Labor Operating Cost (Y L ) = 10.036(X) ' 415 

The operating labor costs are distributed as follows: 

Direct labor 100% 

Maintenance labor 0% 

All required field and shop maintenance is performed by the operators and mech- 
anics. 

The operating labor costs are based on straight days pay and consist of the fol- 
lowing typical range of personnel: 

Av salary 

per hour 
(base rate) 

Belt operators 50% $15.64 

Belt mechanics 50% 15.64 

Average wage for labor is $15.64 per worker-hour (including burden and average 
shift differential). 



567 

(S) Supply Operating Cost (Y s ) = 0. 018(X) * 771 

The supply costs consist of 100% electric power for conveyor drive and facility 
lighting. 

(E) Equipment Operating Cost (Y E ) = 1. 010 (X) ' 535 

The equipment operating costs consists of 100% for replacement parts and belt- 
ing. 

ADJUSTMENT FACTORS 

Distance factor For haul distances other than the assumed 300 m (980 ft), multiply 
the costs obtained from the curves by the following factors: 

Labor factor (F L ) = 0.095(D) * 413 

Supply factor (F s ) = 0.003(D) ' 996 

Equipment operation factor (F E ) = 0.003(D) 0,996 
where D = distance conveyed, in meters. 

Grade factor For other than horizontal belts, multiply the cost obtained from the 
supply curve by the following factor: 

Supply factor (F s ) = 0. 983+0. 355(R) 

where R = slope of the incline or decline, in degrees. 



568 



Underground Mining— Operating Costs 



1,000 



o 
■o 

v_ 
O 

a 
to 
_o 
"o 

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CO 
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O 



100 



10 



0.1 







































































































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c^ V 




























S° 


X 




























// 




































































Y L = 10.036(X) 

Y s = 0.01 8(X) 

, .0.535 " 
Y E = 1.010(X) 


/ 


















X 










































































100< 


:x< £ 


)0,( 


DOC 





100 1,000 10,000 

MATERIAL, metric tons conveyed per day 

5.2.3.5. Conveyor haulage 



100,000 



569 

5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.3. MINE HAULAGE 

5.2.3.7. LOAD-HAUL-DUMP HAULAGE 

Through this LHD haulage curve, the cost of main haulage systems using LHD units can 
be determined. The base curve is designed to assess the cost of haulage in horizon- 
tal or near horizontal workings for a 500-m (1,600 ft), one-way trip distance. As 
it will invariably be necessary to adjust for different haul distances, factors are 
supplied that should be used as multipliers of the derived labor and equipment oper- 
ation curve values. 

The total daily cost is the sum of the two separate cost curves (labor and equipment 
operation) based on a haulage rate (X), in metric tons of ore and waste moved per 
day. The curves are valid for operations between 100 and 20,000 mt, operating two 
shifts per day. Costs derived include all daily operating and maintenance costs 
associated with the operation of the LHD units. Actual haul units used for the 
basis of the curve were determined by comparison of operating costs of several units 
with capacities ranging from 0.8-to 9.9-m3 buckets. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 1.584(X) ' 812 

The operating labor costs are distributed as follows: 

Small Large 

(100 to (5,000 to 

5,000 mtpd) 20,000 mtpd) 

Direct labor 52% 38% 

Maintenance labor 48% 62% 

The operating labor costs are based on straight days pay and consist of the fol- 
lowing typical range of personnel: 

Av salary 

per hour 
(base rate) 
LHD Operators 100% $16.09 

(E) Equipment Operating Cost (Y E ) = 1.165(X) ' 859 

The equipment operating cost consists of 50% for replacement parts, 19% for 
fuel, 6% for lubrication, and 25% for tires. 

ADJUSTMENT FACTORS 

Distance factor For haul distances other than 500 m (1,600 ft) one way, multiply 
the costs obtained from the curves by the following factors: 



Labor factor (F L ) = 0.426+0. 00124(D) 

Equipment operation factor (F E ) = 0. 293+0. 0014(D) 
where D = one way haul distance, in meters. 



570 

Grade factor A factor is also supplied for other than horizontal workings with cost 
related to percent grade. This factor should be used if the grade exceeds 2% 
and is equally applicable if dealing with inclines or declines. For other than 
horizontal haulageways, multiply the costs obtained from the curves by the fol- 
lowing factors: 

Grade factor (F G ) = 0. 929(1. 037) G 

where G = grade, in percent of incline or decline. 



571 



Underground Mining- Operating Costs 



10,000 



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y 




























, xO.812 " 
Y L =1.584(X) 

, N 0.859 
Y E =1.165(X) 

100 <X< 20,000 


y 
























































i i iii 



100 1,000 10,000 

ORE AND WASTE, metric tons per day 

5.2.3.7. LH.D. Haulage 



100,000 



572 

5.2. UNDERGROUND MINING—OPERATING COSTS 

5.2.3. MINE HAULAGE 

5.2.3.8.1. RAIL HAULAGE 
MAIN LINE 



Main line haulage system costs are based on two trains, each consisting of one 
trolley or diesel locomotive and side-dump ore cars, operating each shift with an 
average one-way haul of 3,049 m with a 1% grade in favor of the loaded train. 

The total daily cost for a main line rail haulage system is the sum of the three 
separate cost curves (labor, supplies, and equipment operation) based on a haulage 
rate (X), in metric tons of ore and waste moved per day. The curves are valid for 
operations between 100 and 50,000 mt, operating two shifts per day. These costs 
consist of charges for operation, maintenance, and repair of locomotives and ore 
cars, as well as electric, battery, or diesel power to run them, and infrequent 
track repair. 

BASE CURVES 

(L) Labor Operating Cost (Trolley) (Y L TROLLEY^ = 128.402(X) * 386 

The operating labor costs for trolley locomotives are distributed as follows: 

Direct labor 58% 

Maintenance labor 42% 

Main line maintenance labor costs are distributed 11% for locomotive repair and 
maintenance labor, 31% for ore car and flat car repair and maintenance. 

The operating labor costs are based on straight days pay and consist of the fol- 
lowing typical range of personnel: 

Av salary 

per hour 
(base rate) 

Production loader 31% $16.33 

Production motorman 33% 15.89 

Electrician 25% 27.73 

Laborer 11% 15.25 

Average wage for labor is $18.82 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Cost (Trolley) (Y s TROLLEY > = 0.043(X) ' 971 

The trolley locomotive supply cost consists of 6% track repair materials and 94% 
electric power. 

(E) Equipment Operating Cost (Trolley) (Y E TROLLEY ) = 7. 797 (X)°* 579 

The trolley locomotive equipment operating costs consist of 27% for locomotive 
repair and maintenance parts, 64% for ore car and flat car repair and mainten- 
ance parts, and 9% for lubrication. 



573 

If diesel locomotives are used instead of trolley locomotives for main line haulage, 
use the following equations: 

(L) Labor Operating Cost (Diesel) (Y L DIESEL^ = 104.954(X) ' 402 

The operating labor costs for diesel locomotive are distributed as follows: 

Direct labor 49% 

Maintenance labor 51% 

Diesel maintenance labor costs are distributed 18% for locomotive repair and 
maintenance labor, 33% for ore car and flat car repair and maintenance labor. 

The operating labor costs are based on straight days pay and consist of the fol- 
lowing typical range of personnel: 

Av salary 

per hour 
(base rate) 

Production motorperson 40% $15.89 

Production loade 43% 16. 33 

Laborer 17% 15.25 

Average wage for labor is $15.97 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Cost (Diesel) (Y s DIESEL > = 0.385(X) ' 331 

The diesel locomotive supply cost consists of 100% track repair materials. 

(E) Equipment Operating Cost (Diesel) (Y E DIESEL^ = 4.382(X) ' 680 

The diesel locomotive equipment cost consists of 30% for locomotive repair and 
maintenance parts, 51% for ore car and flat car repair and maintenance parts, 9% 
for lubrication, and 10% for fuel. 

ADJUSTMENT FACTORS 

Haul Distance Factor If one-way haul distance varies from 3,049 m (10,000 ft) for a 
main line system, multiply the costs obtained from the curves by the following 
factors: 

Main line trolley: 

Labor factor (Y L TROLLEY > = 0.259(D) ' 169 

Main line diesel: 

Labor factor (Y L DIESEL^ = 0.171(D) ' 221 

Main line trolley and diesel: 

Supply factor (Y s TR0 LLEY & DIESEL > = 0.042(D) ' 396 

Equipment operation factor (Yg TROLLEY & DIESEL^ = 0.042(D) 0,396 
where D = one way haul distance, in meters. 

Shift Factor If a rail haulage system operates one shift per day, derive the appro- 
priate cost by entering the cost curves at two times the system capacity, and 
then decrease the derived costs by 50% (i.e., a main line system operates one 
shift per day at 400 mtpd, use 800 mtpd, to derive curve costs, then decrease 



574 



these costs by 50%). If a rail system operates three shifts per day, enter the 
cost curves at two-thirds the system capacity, and then increase the derived 
costs by 50% (i.e., a main line system operates three shifts per day at 900 
mtpd, use 600 mtpd to derive the curve costs, then increase these costs by 50%). 



575 



Underground Mining— Operating Costs 



10,000 



1,000 



o 

■a 

V- 

0> 

a. 
m 
o 
"o 



CO 
O 
O 



100 



10 



















































































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**5 


i\<* 


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rX 


ov^> 










V 






"^ 








, 


^^ 










> 


/- 












33 


^ 


l^ 


























































•**/ 


























r- o9 V - - 


























- 9?S 


f 


























X 














































, ,0.386 - 
Y L = 128.402(X) 

Y s = 0.043(X)°' 971 ~ 

Y E = 7.797(X) a579 : 

100 <X< 50,000 ~ 




















,/ 














s 


































































III I III 



100 1,000 10,000 100,000 

ORE AND WASTE, metric tons moved per day 

5. 2.3.8.1. a Rail haulage— main line 
TROLLEY 



576 



Underground Mining— Operating Costs 



10,000 



>> 

o 
-a 

i_ 

ID 

a. 

w 

l. 
_a 

"o 



CO 

o 
a 



1,000 



100 



10 























































s 










































v & 


1<^ 




\ -p 
























z& 


£ 






















*& 












































v& 


, N 0.402 
Y L = 104.954(X) 

, x 0.331 
Y s = 0.385(X) 

, v 0.680 - 
Y E = 4.382(X) 

100 <X< 50,000 - 








>^ 




















































































































































































So 


^l 





































































































100 1,000 :o,ooo 100,000 

ORE AND WASTE, metric tons moved per day 

5.2.3.8.1. b Rail haulage— main line 
DIESEL 



577 

5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.3. MINE HAULAGE 

5.2.3.8.2. RAIL HAULAGE 
MULTILEVEL 

Multilevel haulage system costs are based on one train, comprising a battery locomo- 
tive and side-dump ore cars, operating each shift with an average one way haul dis- 
tance of 915 m (3,000 ft) with a 1% grade in favor of the loaded train. The number 
of trains operating are determined from the daily production from each mine level. 
For example, a 2,000-mtpd mine has four mine levels; however, only two levels are 
producing ore while the other two levels are being developed; so the haulage system 
on each level should be capable of transporting 1,000 mtpd. 

The total daily cost for a multilevel rail haulage system is the sum of the three 
separate cost curves (labor, supplies, and equipment operation) based on a haulage 
rate (X), in metric tons of ore and waste moved per day. The curves are valid for 
operations between 100 and 15,000 mt, operating two shifts per day. These costs 
consist of charges for operation, maintenance, and repair of locomotives and ore 
cars, as well as electric, battery, or diesel power to run them, and infrequent 
track repair. 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 155. 792(X) ' 290 

The operating labor costs are distributed as follows: 

Direct labor 72% 

Maintenance labor 28% 

Multilevel labor operating curve costs are distributed 80% for locomotive 
repair and maintenance labor, 20% for ore car and flat car repair and 
maintenance labor. 

The operating labor costs are based on straight days pay and consist of the fol- 
lowing typical range of personnel: 

Av salary 

per hour 
(base rate) 

Production motorman 33% $15.89 

Production loader 34% 16. 33 

Laborer 33% 15.25 

Average wage for labor is $15.83 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Cost (Y s ) = 0.105(X) * 564 

The supply cost consists of 43% track repair materials and 57% electric power to 
recharge locomotive batteries. 

(E) Equipment Operating Cost (Y £ ) = 5.062(X)°* 558 

The equipment operating cost consist of 28% for locomotive repair and mainten- 



578 

ance parts, 60% for ore car and flat car repair and maintenance parts, 9% for 
lubrication, and 3% for locomotive battery replacement. 

ADJUSTMENT FACTORS 

Haul Distance Factor If one-way haul distance varies from 915 m (3,000 ft) for a 
multilevel system, multiply the cost obtained from the curves by the following 
factors: 

Labor factor (Y L ) = 0.539(D) - 091 

Supply factor (Y s ) = 0.097(D) - 344 

Equipment operation factor (Y E ) = 0.097(D) - 344 
where D = one way haul distance, in meters. 

Shift Factor If a rail haulage system operates one shift per day, derive the appro- 
priate cost by entering the cost curves at two times the system capacity, and 
then decrease the derived costs by 50% (i.e., a multilevel system operates one 
shift per day at 400 mtpd, use 800 mtpd, to derive curve costs, then decrease 
these costs by 50%). If a rail system operates three shifts per day, enter the 
cost curves at two-thirds the system capacity, and then increase the derived 
costs by 50% (i.e., a multilevel system operates three shifts per day at 900 
mtpd, use 600 mtpd to derive the curve costs, then increase these costs by 50%). 



579 



Underground Mining— Operating Costs 



10,000 



1,000 



a 

T3 

u 

0) 
Ol 

tn 

L. 

"o 

T3 

I-" 
CO 
O 
O 



100 



10 



1 



























































































































U 


go^ 


























































%_\r>0 
















""■" 










v 0?< 


* 0< ^ 




















c.oN 


^9 r 


^e 








































































^^ 










































































^ 






































, . 0.290 
Y L = 155.792(X) 

/ v 0.564 
Y s = 0.105(X) 

, ,0.558 
Y F = 5.062(X) 












o\'\ e ! 


v-^ 












S 


0?^> 






































-"" 
















L. 


1 00 < 


X< 1! 


5,0 


00 





100 1,000 10,000 100,000 

ORE AND WASTE, metric tons moved per day 

5.2.3.8.2. Rail haulage-multilevel 



580 

5.2. UNDERGROUND MINING—OPERATING COSTS 

5.2.3. MINE HAULAGE 

5.2.3.9. TRUCK HAULAGE 

The truck haulage curves cover costs of transporting ore and waste in rear-dump 
trucks. It is assumed that front-end loaders or LHD's are used for loading, and 
that one loader is required for every two trucks in use. One way haulage occurs 
over an average distance of 680 m (2,250 ft). The curves for truck haulage are de- 
signed to cover situations where the trucks start on a level grade, and are at a 
maximum attainable speed when uphill or downhill segments of the haulage route are 
encountered. In most instances the actual haul distance for a mine under evaluation 
will differ from the one given above. Adjustment can be made by consulting the 
haulage distance factor contained below. 

The total daily cost is the sum of the two separate cost curves (labor and equip- 
ment operation) based on a haulage rate (X), in metric tons of ore and waste moved 
per day. The curves are valid for operations between 1,000 and 50,000 mt, operat- 
ing two shifts per day. 

BASE CURVES 

(L) Labor Operating Costs (Front-End Loader) (Y L FEL ) = 0.386(X) 0,974 

(L) Labor Operating Costs (LHP) (Y L LHD ) = 0.361(X) ' 980 

The operating labor costs are based on straight days pay and consist of the fol- 
lowing typical range of personnel: 

Av salary 

per hour 
(base rate) 

Truck drivers 61% $16.90 

Loader Ooerators 39% 16.90 

(E) Equipment Operating Costs (Front-End Loader) (Y E FEL ) = 0. 747(X)°* 915 

(E) Equipment Operating Costs (LHD) (Y E LHD ) = 0.506(X) * 953 

The equipment operating cost consists of 28% for parts, 47% for fuel and lubri- 
cation, and 25% for tires. The equipment operating curve includes the daily 
overhaul and maintenance costs for parts, and daily fuel, lube, and tire costs. 



581 

ADJUSTMENT FACTOR 

Haulage Distance The given curves are valid for one-way haul distances of approxi- 
mately 680 m (2,250 ft). To determine equipment and labor costs for one way- 
haul distances of other than 680 m (up to 3,000 ft), multiply the costs obtained 
from the truck haulage curves by the following factors: 

Labor factor (F L ) = 0.055(D) ' 445 

Equipment operation factor (F E ) « 0.053(D) * 450 
where D = actual one way haul distance, in meters. 

When the haulage distance is increased, the cycle time will show a corresponding 
increase, and more trucks will be needed to haul an equivalent amount of mater- 
ial. 



582 



Underground Mining— Operating Costs 



100,000 



o 10,000 



Q. 

to 

"o 



CO 

o 
o 



1,000 



100 































































































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// 


















. -O. /> 


■y 
















* C 


e^y 

















L*\ n 
















% 


l<*>° 
















// 


















s<£ 


/ 






















0.974 
Y L= 0.386(X) 

0.915 
Y E = 0.747(X) 

1,000 <X< 50,000 


// 












/ 


























i iii 



1,000 10,000 100,000 

ORE AND WASTE, metric tons hauled per day 

5.2.3.9. a Truck haulage 
FRONT-END LOADER 



Underground Mining— Operating Costs 



100,000 



o 10,000 



© 
a 

(0 

o 

o 
■o 



to 

§ 1,000 



100 































































































^ 


K 


















yy 




















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o< ( 


i^' 














$ 


& 
















V 


& 
















//' 


















^ 


sy 


















,<y 












0.980 
Y L = 0.361 (X) 

. p.953 
Yr= 0.506fXl 


sy 
























1,000 <> 

1 1 


:< 5 


0,00 






1,000 10,000 100,000 

ORE AND WASTE, metrfc tons hauled per day 

5. 2.3. 9. b Truck haulage 
LH.D. 



584 

5.2. UNDERGROUND MINING—OPERATING COSTS 

5.2.4. TRANSPORTATION 

5.2.4.4. LONG-DISTANCE RAIL HAULAGE 



The following tabulation gives the average cost, in cents per metric ton-kilometer, 
for shipping mineral materials from the Mountain-Pacific territorial area (including 
Denver, CO) to any of the five territorial areas within the continental United 
States. This information is valid as of January 1984. 

AVERAGE SHIPPING COSTS FOR MINERAL MATERIALS, cents per metric ton-kilometer 



Material shipped from 


Area destination 


Mountain-Pacific area 


Mountain- 
Pacific 


Western 


South- 
western 


Southern 


Official 


U.S. 
average 




2.53 
1.47 
3.01 
2.65 
2.66 
2.94 
4.13 
2.73 
2.54 
1.83 
2.94 
3.47 
3.39 
3.82 
3.30 
4.31 
2.35 
1.87 


1.04 e 

1.04 e 

NA 

NA 

NA 

1.55 

NA 

4.75 

1.01 e 

NA 

NA 

2.65 

2.85 

3.09 

NA 

2.03 

1.84 

1.25 


2.87 e 
NA 
NA 
2.91 e 
2.87 e 
2.18 
NA 
NA 
1.68 e 
NA 
NA 
1.49 
NA 
1.99 
NA 
2.05 
1.49 
1.13 


NA 

NA 

NA 

NA 

NA 

1.96 

NA 

NA 

NA 

1.89 

1.89 

2.05 

1.89 

2.12 

NA 

2.31 

1.58 

1.30 


NA 

NA 

NA 

NA 

NA 

2.02 

NA 

NA 

NA 

NA 

NA 

2.25 

NA 

2.62 

NA 

2.32 

1.47 

1.33 


2.33 




1.47 




3.01 




2.67 




2.66 




2.68 
4.11 




2.74 
2.54 




1.85 




2.37 
2.09 
2.67 
2.34 




3.30 


2 
Nonmetallic minerals n.e.c. .. 


2.22 
1.63 
1.26 



e Estimated. NA Not available. 

Most nonmetallic ores, except fuels, 
o . ... 

Includes agate, crude chalk, lithium, earth or soil, coral, rubidium, graphite, 

sericite, nepheline syenite, shale, well drilling cores, crude topaz, vermiculite- 
unexpanded, slag, perlite, Cornwall, crystal quartz rock, quartzite, silaceous flux- 
ing ore, silica rock, and zeolites. 



Source: 1983 Carload Waybill Sample data collected by Dep. of Transportation, 
Federal Railroad Administration, Office of Conrail. 



585 

Costs for shipping certain mineral materials from the Mountain-Pacific area to other 
areas may be not available (NA) for two reasons; first, shipments of these materials 
has dropped dramatically during the last ten years, making evaluation of costs im- 
possible. Second, certain mineral materials are typically not shipped between two 
areas. For example, copper precipitates traditionally are never shipped out of the 
Mountain-Pacific area. 

To determine the total cost of transporting a specific mineral material, first 
select the appropriate cost from the table listings given above, then multiply that 
value by the distance in kilometers the material is to be shipped, and also by the 
metric tonnage to be shipped. Finally, divide the answer by 100 to get a value in 
dollars. 

Example: The cost for shipping 100,000 metric tons of fertilizer minerals from 
Denver to a point in the Southern Area 2,500 km away is: 

[(2.05tf/mfkm)x(100,000mt)x(2,500km)/(100tf/fc) = $5,125,000. 

The following map shows the boundaries for the different territorial areas. 

To estimate the cost for shipping mineral materials from one point to another, irre- 
spective of territorial zones, use the following equation: 

Y = [15.359(D)-°* 275 ]/100 

where D = distance, in kilometers the material is to be shipped, 

and Y = cost, in cents per metric ton kilometer. 

The resultant answer must be multiplied by the tonnage and the distance it is to 
be hauled to get a total cost in dollars. 



586 




587 
5.2. UNDERGROUND MINING— OPERATING COSTS 
5.2.4. TRANSPORTATION 
5.2.4.5. LONG DISTANCE SURFACE CONVEYOR 

These curves cover the cost of transporting material from the mine via a single- 
flight conveyor belt reinforced with high-strength steel and cover a capacity range 
of 15,000 to 150,000 mtpd. The material is conveyed up a 10° slope for a distance 
of 1 km. The conveyor availability is 94%. Usually, the material is crushed or 
screened at the mine site before being conveyed. Screen and crusher costs are not 
included in this cost but are covered in separate sections. 

The total daily cost is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a production rate (X), in metric tons material trans- 
ported per day. The curves are valid for operations between 15,000 and 150,000 mt , 
operating three shifts per day. The curves include all daily operating and mainten- 
ance costs associated with the conveyor operation. 

BASE CURVE 

(L) Labor Operating Cost (Y L ) = 7.429 (X)°» 464 

The operating labor costs are distributed as follows: 

Small Large 

(15 to (50,000 to 

50,000 mtpd) 150,000 mtpd) 

Direct labor 71% 47% 

Maintenance labor 29% 53% 

The direct labor costs consist of the following typical range of personnel: 

Small Large Av salary 

(15 to (50,000 to per hour 

50,000 mtpd) 150,000 mtpd) (base rate) 

Operator 64% 54% $16.25 

Assistant operator 36% 46% 13.97 

The average wage for labor is $15.32 per worker-hour (including burden and 
average shift differential). 

(S) Supply Operating Cost (Y s ) = 0.068(X) ' 933 

The supply cost consists of 100% electric power. 

(E) Equipment Operating Cost (Y E ) = 2.226 (X) * 358 

The equipment operating cost consists of 95% for repair parts and 5% for lubri- 
cation for the idlers and mechanical parts. 

ADJUSTMENT FACTORS 

Length and Slope Factor To determine costs for varying conveyor lengths and slopes, 
multiply the costs obtained from the curves by the following factors: 



588 



Labor factor (F L ) = 0. 815+0. 190 (L) 

Supply factor (F s ) = [ 0.208+0. 0794(S) ][ L] 

Equipment operation factor (Fg) = L 

where L = length of conveyor, in kilometers, 

and S = slope of conveyor, in degrees (S is between 0° and 15°). 

The cost for a decline conveyor is equal to that for a horizontal conveyor (0° 
slope) . 



589 



Underground Mining— Operating Costs 



10,000 



o 

-a 

u 
o 
a. 

0) 

V. 

O 

"o 



O 
O 



1,000 



100 





















































>* 
















i/ 
















<3 


-°5S 






















































s 








































€ 


a^pr* en ' 


L Op< 


2h 


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M ^ \*. — 














r 


1 Afii 
















Y L = 7.429(X) W * 

v , ,0.933 
Y s = 0.068(X) 

/ x0.358 
Y F = 2.226(X) 








































>,ooo<x 




< 1S 


i0,0C 

1 


10 



10 
10,000 100,000 1,000,000 

MATERIAL, metric tons transported per day 
5.2.4-.S. Long distance surface conveyor 



590 

5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.4. TRANSPORTATION 

5.2.4.6. LONG DISTANCE TRUCK HAULAGE 

The trucking industry has undergone intensive change since its recent deregulation. 
Truck transportation of mineral materials has shifted predominantly away from the 
class rate system to the bulk commodity method. This has corresponded with a de- 
crease in the number of carriers and an increase in competition. Each carrier now 
determines its own rate and tariff schedules. 

Truck transportation costs as shown here cover the transportation of mineral mater- 
ials by 23 mt rear-dump trucks. The area covered includes the western contiguous 
United States. 

BASE CURVE 

The base curve determines costs for the transportation of each metric ton of mineral 
materials via county and State maintained roads with less than or equal to 3% 
grades. The curves are based on the one way distance (X), in kilometers the mater- 
ial is hauled. The curves are valid for operations between 20 and 200 km. 

(T) Truck transportation (Y T o%-3% GRADE ) = 0.227 (X) 0,715 

Costs determined using this curve must be multiplied by the total tonnage to be 
hauled to obtain the final cost. 

When the average grade of road is greater than 3%, but less than 6%, a tariff factor 
is included with the base curve equation. 

(T) Truck transportation (Y T 3%_6% GRADE ) = 0.180 (X)°* 909 

Costs determined using this curve must be multiplied by the total tonnage to be 
hauled to obtain the final cost. 

When the average road grade is equal to or greater than 6%, a different tariff fac- 
tor will have to be included with the base curve equation, modifying it to 

(T) Truck transportation (Y T +5% GRADE) = 0.179(X)°* 963 

Costs determined using this curve must be multiplied by the total tonnage to be 
hauled to obtain the final cost. 

ADJUSTMENT FACTORS 

Long-Term Contract The final values arrived at through multiplying the tonnage by 
any of the three curves can be reduced by 10% to 20% if long term hauling con- 
tracts are to be used. 

Tonnage If trucks with carrying capacities greater or less than 23 mt tons are 
used, the cost per metric should be modified accordingly. 



591 



Underground Mining— Operating Costs 



c 
o 



E 
o 

Q. 
01 

"o 

T3 



(SI 
o 

O 



100 



10 ■ 



< 


3 % Grade 
















/ 0.715 
Y T = 0.227(X) 

> 3%, < 6% Grade 
Y T = 0.180(X) a9 ° 9 

> 6% Grade 

0.963 
Y T = 0.179(X) 

20<X< 200 


































vft / /- 












Pi 












7%* 
















/ S ' w 








/, 


7*+ 

'J- i / 
















p^ 9 


















£j« 



































10 100 

DISTANCE, kilometers one way per day 

5.2.4.6. Long distance truck haulage 



1,000 



592 

5.2. UNDERGROUND MINING— OPERATING COSTS 
5.2.5. MINE PLANT GENERAL OPERATIONS 
5.2.5.2. COMPRESSED AIR FACILITIES 



The total daily cost for a compressed air plant is the sum of the three separate 
cost curves (labor, supplies, and equipment operation) based on mine air require- 
ments (X), in cubic meters per minute. The curves are valid for operations between 
20 and 2,000 nr* , operating two shifts per day. The costs consist primarily of 
charges for the maintenance and repair of compressors as well as the electric power 
to run them. All labor costs are restricted to repair and maintenance labor, and 
supplies are restricted to infrequent pipe section or pipe joint replacement. 

If actual compressed air requirements are known or can be estimated the evaluator 
may determine the operating cost by consulting the curve directly. If compressed 
air requirements are not known they may be estimated from the following information: 

Air requirement m-Vmin) 
Mining Method per metric ton per shift 

Shrinkage, cut and fill, mechanized cut and fill, 
square-set stoping methods: 

Range 0. 027-0. 265 

Average 0.200 

Blasthole mining: 

Range 0. 073-0. 094 

Average 0. 083 

Longhole drilling, sublevel, block caving methods: 

Range . 050-0. 09 3 

Average 0.070 

Open stoping: 

Range 0. 170-0. 260 

Average 0.200 

BASE CURVE 

(L) Labor Operating Costs (Y L ) = 0.006(X) X * 213 

The operating labor costs are distributed as follows: 

Direct labor 0% 

Maintenance labor 100% 

The operating labor costs are based on straight days pay and consist of the fol- 
lowing typical range of personnel: 

Av salary 
per hour 
(base rate) 
Maintenance and 



repair labor 100% $17.66 



593 

Average wage for maintenance labor is $17.66 per worker-hour (including burden 
and average shift differential) 

(S) Supply Operating Costs (Y s ) = 0.743(X) 1 * 214 
The supply cost consists of 100% electric power. 

(E) Equipment Operating Cost (Y E ) = 0.013(X) 1,213 

The equipment operating cost consists of 60% for repair and maintenance parts 
and 40% for lubrication. 

ADJUSTMENT FACTOR 

Elevation Factor If elevation of the compressor plant varies from 1,600 m, a cor- 
rection for altitude must be applied to the air requirements. To adjust air 
volume requirements, multiply the costs obtained from the compressed air curves 
by the following factor if the plant is not at 1,600 m elevation: 



Elevation, 


Factor 


Elevation, 




ft 


m 


ft 


m 


Factor 








0.85 


6,000 


1,831 


1.03 


1,000 


305 


0.87 


7,000 


2,136 


1.07 


2,000 


610 


0.90 


8,000 


2,441 


1.11 


3,000 


915 


0.93 


9,000 


2,746 


1.15 


4,000 


1,220 


0.96 


10,000 


3,050 


1.19 


5,000 


1,526 


0.99 


12,500 


3,813 


1.31 


5,249 


1,600 


1.00 









The factors can be generated from the following equation: 

Elevation factor (F E ) = 0.823+0. 0001(G) 
where G = elevation, in meters. 



594 



Underground Mining— Operating Cost; 



100,000 



10,000 



O 
T3 

u 
© 

a. 

m 

l. 
a 



1,000 



3 100 



o 
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1.213 : 

Y L = 0.006(X) 

1.214 _ 
Y s = 0.743(X) 

1.213 = 
Y E = 0.013(X) : 

20 <X< 2,000 - 












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10 100 1.000 10,000 

AIR REQUIREMENT, cubic meters per minute 

5.2.5.2. Compressed air facilities 



595 

5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.5. MINE PLANT GENERAL OPERATIONS 

5.2.5.5. GENERAL ITEMS—COMMUNICATIONS, SANITATION, HOUSEKEEPING, FIRE 
PROTECTION AND ELECTRICAL 

This set of curves covers the cost of general yard work, carpentry repair, janitor- 
ial services, plumbing, road grading, ditch cleaning, general mechanical repairs, 
handling incoming supplies and materials, electrical maintenance and repair, and 
general housekeeping. The tonnage mined is based on two shifts per day. 

Total cost is the sum of three separate cost curves (labor, supplies, and equipment 
operation) having a production rate (X), in metric tons of ore and waste mined per 
day. The curves are valid for operations between 100 and 50,000 mt, operating two 
shifts per day. The curves include daily operating and maintenance costs associated 
with utility trucks, mobile cranes, motor patrols, various cleaning materials, and 
electrical -plumbing supplies. 

BASE CURVE 

(L) Labor Operating Cost (Y L ) = 25.640(X) * 577 

The operating labor costs are distributed as follows: 



Direct labor 

Maintenance labor. 



90% 
10% 



The operating labor costs are based on straight days pay and consist of the fol- 
lowing typical range of personnel: 

Small Large Av salary 

(100 to (1,000 to per hour 

1,000 mtpd) 50,000 mtpd) (base rate) 

Utility person 47% 20% $15.43 

Skiptender - 11% 15.77 

Equipment operator 14% 16% 18.18 

General laborer - 14% 14.11 

Security janitor 33% 15% 14.25 

Welder, first class 6% 15% 16.92 

Electrician - 9% 25.54 

Average wage for labor for the small mine is $15.52 per worker-hour and for the 
large mine is $16.68 per worker-hour (including burden and average shift diffe- 
rential) . 

(S) Supply Operating Cost (Y s ) = 1.123(X) * 843 . 

The supply cost consists of 100% miscellaneous supplies. 

(E) Equipment Operating Cost (Y E ) = 16.430(X) ' 339 . 

The equipment cost consists of 37% for parts, 54% for fuel and lubrication, and 
9% for tires. The equipment operating curve includes the daily overhaul and 
maintenance costs for parts, and daily fuel, lubrication, and tire costs. 



596 



Underground Mining— Operating Costs 



100,000 



10,000 - 



5N 

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1.000 



100 



10 



I I I I I 




















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Y L = 25.640(X) *" 






















, N 0.843 
Y s = 1.123(X) 




















"" 
_ Y E = 16.430(X) "^ 


S39 














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100 1,000 10,000 100,000 

ORE AND WASTE, metric tons per day 

5.2.5.5. General items 

COMMUNICATIONS, SANITATIONS, HOUSEKEEPING, 

FIRE PROTECTION. AND ELECTRICAL 



597 
5.2. UNDERGROUND MINING— OPERATING COSTS 
5.2.5. MINE PLANT GENERAL OPERATIONS 
5.2.5.7. PORTABLE POWER GENERATION 



This section is to be used in conjunction with section 4.2.5.7. when electric power 
is unavailable through a commercial power utility company or when it would be un- 
economical to run power distribution facilities to the user. The total cost per 
kilowatt hour (kWh) replaces the commercial Denver, CO, power rate used in other 
sections of this manual. 

These curves cover the cost of power production from a single portable power unit 
(see adjustment factor for multiple units) ranging from a small diesel generator 
with less than 100 kW output to a large gas turbine producing more than 20,000 kW 
of power. 

Total cost is expressed in terms of cents per kilowatt hour for a specific power 
output. The curves cover the cost of labor for overhauls and normal repairs, parts 
for overhauls and normal repairs, and fuel and lubrication costs. The curves have 
been divided into three parts: the first part covering horizontal diesel generators 
from 18- to 400-kW output, the second part covering horizontal diesel generators 
from 400- to 2,900-kW output, and the last part covering gas turbine generators from 
2,900- to 23,600-kW output. 

Total cost is the sum of two separate cost curves (labor and equipment operation) 
based on a specific power output rating (X) , in kilowatts. The curves are valid for 
generators between 18 to 23,600 kW. The curves include all daily operating and 
maintenance costs associated with power production per generator unit. 

BASE CURVE 

To convert from kilovolt ampere (kV'A) demand to kilowatt power output estimate 
the power factor (PF). This may vary from 0.80 for electric motor circuits to 1.00 
for electric light circuits. The kilowatt output is then determined by kV*A x PF 
= kW. [Power Output Determination - for surface mine power output (kW), see section 
2.2.4.2. For underground mine and mineral processing plant power demand (kV*A) , 
see sections 4.2.5.3. and 6. 1.8.4. (IC 9143)]. 

(L) Labor Operating Cost (Y L 18-400 kW> = 0. 169(X)~ - 466 

<*L 400-2,900 kW) = O- 409 ^" 0,4 !^ 
<*L 2,900-23,600 kW> = O.OOSU)" - 4 ^ 
The operating labor costs are distributed as follows: 

Direct labor 0% 

Maintenance labor 100% 



598 

The labor costs consist of the following typical range of personnel: 

Av salary 
per hour 
(base rate) 
Mechanics 100% $18.11 

The average wage for maintenance labor is $18.11 per worker-hour (including bur- 
den and average shift differential). 

The labor curves do not contain any operating labor costs since all units oper- 
ate unattended in an automatic mode (some smaller units may not have automatic 
starting systems and would require a manual start). The only labor necessary is 
that which is required for maintenance and scheduled overhauls by mechanics. 

(E) Equipment Operation Costs (Y E 18-400 kW^ = 0. 145(X)~ 0, ° 75 

<*E 400-2,900 kW> " °- 158 ( x >"°- ™ 
<*E 2,900-23,600 kW> = 0.131(X)-°.122 
The general equipment operating cost component distribution is as follows: 

Discription Repair parts Fuel and lube Tires 

Horizontal diesel: 

18 to 400 kW 18.0% 73% 9% 

400 to 2,900 kW 12.0% 79% 9% 

Gas turbine: 2,900 to 

23,600 kW 11% 75% 14% 

The parts category includes normal maintenance parts such as belts and pumps, 
and major overhaul items such as valves, injectors, brushes, and commutators. 
The fueling cost is based on $1.00/gal diesel fuel (at 7.093 lb/gal) or $3.20/ 
1,000 ft-' of natural gas with a Btu rating of 1,050 Btu's per cubic foot. 

ADJUSTMENT FACTORS 

Sulfur Fuels Factor If high sulfur fuels are used, multiply the labor and parts 
costs by the following factor: 

Sulfur fuels factor (F L ) = 1.333 

Power Rate If power is to be supplied by more than one unit, then the total power 
output should be divided by the number of required units to obtain the power 
output per unit (X) needed for entering the curves. 

Power Source For those cases where power is supplied to the mine and mineral pro- 
cessing plant from different sources as a result of geographic or economic con- 
straints, separate cost estimates, using this section, must be made to reflect 
the independent power outputs. This will result in different power costs for 
mines and mineral processing plants and must be accounted for separately in the 
mining and mineral processing sections of this manual. 



599 



Underground Mining— Operating Costs 



3 
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O 
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0.1 



0.01 



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" w , -0.466 
Y L = 0.169(X) 

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Y E= 0.145(X) 

18<X< 400 
















































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100 
POWER OUTPUT, kilowatts 

5.2.5.7. a Portable power generation 



1,000 



630 



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Y £ =0.158(X) 

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1,000 
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5.2.5.7. b Portable power generation 



601 



0.1 



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0.001 



0.0001 



0.00001 



Underground Mining— Operating Costs 





■ ■ 

, v -0.445 
















Y L = O.OUB^XJ 

, v -0.122 

Y E =0.131(X) 

2,900 <X< 23,600 






























































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1,000 



10,000 
POWER OUTPUT, kilowatts 



100,000 



5.2.5.7. c Portable power generation 



602 

5.2. UNDERGROUND MINING— OPERATING COSTS 
5.2.5. MINE PLANT GENERAL OPERATIONS 
5.2.5.9. STOCKPILE STORAGE FACILITIES 

Stockpile operating costs, as determined in this section, are based on metric tons 
of stockpiled material reclaimed during a two-shif t-per-day operation. The costs 
represented are only applicable for stockpiles formed and reclaimed by conveyors. 
The daily reclaim rate is typically about 67% of the stockpile's live storage capa- 
city. Total stockpile capacity is normally about 600% of the daily reclaim rate. 
For example, a coarse ore stockpile for a mill operating at 10,000 mt of ore per day 
has a live storage capacity of about 15,000 mt and a total stockpile capacity of 
60,000 mt. 

Total operating cost is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on the production rate (X), in metric tons material re- 
claimed from the stockpile per day. The curves are valid for operations between 
2,000 to 200,000 mt, operating two shifts per day. 

BASE CURVES 

(L) Labor Operating Costs (Y L ) = 7.229 (X) * 503 

The operating labor costs are distributed as follows: 

Direct labor 33% 

Maintenance labor 67% 

The labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Mechanic 72.0% $17.99 

Conveyor operator 14.8% 14.89 

Laborer 13.2% 13.26 

Average wage for labor is $16.91 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Costs (Y s ) = 0.019(X) ' 928 
The supply cost consists of 100% electric power. 

(E) Equipment Operating Costs (Y E ) = 4.643(X) ' 524 

The equipment operation curve consists of 94% for repair and maintenance parts 
and 6% for lubrication. 

ADJUSTMENT FACTOR 

Shift-Reclaim Rate If a stockpile facility is operated one shift per day, multiply 
the daily reclaim rate by two; calculate the operating costs from the base 
curves using the adjusted reclaim rate; then decrease the calculated cost by 50% 
to arrive at the adjusted cost. If the facility is operated three shifts per 



603 

day, multiply the dally reclaim rate by 0.67; calculate the operating costs from 
the base curves using the adjusted reclaim rate ; then increase the calculated 
cost by 50% to arrive at the adjusted cost. 



634 



10,000 



5 1.000 



4) 
Q. 

« 

_o 
"o 



o 
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100 



10 













Underground 


Minir 


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. v 0.503 
Y L = 7.229(X) 

, x 0.928 
Y s = 0.01 9(X) 

/ ,0.524 
Y E = 4.643(X) 










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2.C 

i 


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<X 


< 20C 


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30 

i 



1,000 10,000 100,000 1,000,000 

MATERIAL, metric tons reclaimed per day 

5.2.5.9. Stockpile storage facilities 



605 
5.2. UNDERGROUND MINING —OPERATING COSTS 
5.2.5. MINE PLANT GENERAL OPERATIONS 
5.2.5.11. VENTILATION SYSTEM 

Total cost is the sum of three separate cost curves (labor, supplies, and equipment 
operation) having an air capacity (X) , in cubic meters per minute. The curves are 
valid for operations between 1,000 and 60,000 m^, operating three shifts per day. 
Main ventilation system cost consists of charges for repair and maintenance of fans 
as well as the electric power to run them. Operating costs for auxiliary ventila- 
tion equipment is accounted for in each mining method section. For a brief explana- 
tion of factors affecting mine ventilation systems, consult section 4.2.5.11. 

If mine air quantity and mine pressure head (measured in pascals), are known, con- 
sult the base curves directly. If mine air quantity and mine head are not known, 
requirements may be estimated using the information below. 

Air Quantity (m-Vmin) Mine head 
Mining Method per metric ton (Pa) 

Room and pillar: 

Range 0.539-5.208 1,245-2,191 

Average 1.917 1,609 

Sublevel caving, panel caving, sublevel 

blasthole, VCR, longhole : 

Range 1.158-7.881 872-3,586 

Average 3.394 2,111 

Block caving. 

Range 0.607-1.784 1,718-5,727 

Average 1.163 2,117 

Cut and fill, shrinkage, square set: 

Range 2.172-5.073 1,992-6,723 

Average 3.789 4,171 

(Pressure head conversions 1 psi = 27.7 in H2O = 6.8948 kPa) 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 0.003(X) * 870 

The operating labor costs are distributed as follows: 

Direct labor 0% 

Maintenance labor 100% 

The operating labor costs are based on straight days pay and consist of the fol- 
lowing typical range of personnel: 



606 

Av salary 
per hour 
(base rate) 
Maintenance and repair labor.. 100% $17.66 

Average wage for maintenance labor is $17.66 per worker-hour (including burden 
and average shift differential). 

(S) Supply Operating Cost (Y s ) = 0.001(X)°' 870 +[ (H)(Q) (C)/l,997] 

The first part of the equation accounts for miscellaneous system costs and the 
second part of the equation accounts for electric power cost 

where H - mine head in pascals 

Q = quantity of air in cubic meters per minute, 
and C = power cost in dollars per kilowatt hour (use J>0.050/kW*h if 
unknown) . 

(E) Equipment Operating Cost (Y E ) = 0.002(X) ' 870 

The equipment operating cost consists of 94% for fan repair and maintenance 
parts and 6% for lubrication. 

ADJUSTMENT FACTORS 

Air -Warming Factor Heat-plant operating costs correlate to the number of days per 
year the ventilation intake air must be heated above 0° C (see section 
4.2.5.11). The number of heating days per year range from 92 for a climate sim- 
ilar to the Denver, CO, area to 169 for a cold climate. Apply operating costs 
throughout the entire year. Heat-plant equipment operating costs (E) range from 
$56/day per 2,830 m^/min of ventilation for a climate similar to Denver to 
$490/day per 2,830 m^/min of ventilation for a cold climate. Increase labor 
operating costs between $6. 25 /day per 2,830 m^/min of ventilation for a cli- 
mate similar to Denver to $11.50/day per 2,830 m^/min for a cold climate. 

Air-Cooling Factor If an air-cooling plant is required (see section 4.2.5.11.), 

multiply the costs obtained from the ventilation system curves by the following 
factor: 

Air-cooling factor (F c COOLING ^ = 1*75 



607 



100 



o 

© 

o. 

n 
_o 

"5 

•a 
I-" 

o 
o 



10 



0.1 



Underground Mining— Operating Costs 



Equipment operation 




Y L = 0.003(X) ' 870 

Y s = 0.001(X) a87 °+[(H)(Q)(C)/l f 997] 

0.870 
Y E = 0.002(X) 

1,000 <X< 60,000 



» iii 



1,000 10,000 100,000 

CAPACITY, cubic meters air per minute 



5.2.5.11. Ventilation system 



608 

5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.5. MINE PLANT GENERAL OPERATIONS 

5.2.5.12.1. WATER AND DRAINAGE SYSTEM 

DRAINAGE AND DISPOSAL SYSTEM 

The costs derived from these curves apply to underground mines where water is col- 
lected into a central drainage system and transported to sumps for initial settling 
and treatment. The water is then pumped, via a series of vertically emplaced sta- 
tions, to either the mill or a tailings pond. A standard height of 610 m is used. 
As each case addressed will invariably require adjustment for depth, appropriate 
factors are provided in the ADJUSTMENT FACTORS section. Note that height in this 
discussion is identified as vertical pumping distance. Allowances have already been 
made for the discrepancies between pumping head and height pumped. 

The total daily cost is the sum of the three separate cost curves (labor, supplies, 
and equipment operation) based on the amount of water pumped (X), in cubic meters of 
water per day. The curves are valid for operations between 600 and 20,000 m-% 
operating 24 h/d. 

BASE CURVES 

(L) Labor Operating Costs (Y L ) = 0.304(X) * 757 

The operating labor costs are distributed as follows: 

Direct labor 0% 

Maintenance labor 100% 

Labor costs are distributed 48% for pump maintenance and repair and 52% for 
pipeline maintenance. 

The operating labor costs are based on straight days pay and consist of the fol- 
lowing typical range of personnel: 

Av salary 
per hour 
(base rate) 
Maintenance and 
repair labor 100% $17.98 

Average wage for maintenance labor is $17.98 per worker-hour (including burden 
and average shift differential). 

(S) Supply Operating Costs (Y s ) - 0.131(X) 0,992 
The supply cost consists of 100% electric power. 

(E) Equipment Operating Costs (Y E ) = 0.167 (X)°* 766 

The equipment operating cost consists of 93% for repair and maintenance parts 
and 7% for lubrication. 



609 

ADJUSTMENT FACTOR 

Total Pumping Height If pumping height is other than the 610 m used to determine 
the base curves, multiply the costs obtained from the drainage and disposal 
curves by the following factors: 

Labor factor (H L ) = 0.731e[°' 0005 ( H ) 1 

Supply factor (H s ) = 0.0019(H) * 977 

Equipment factor (H E ) = 0.572e[°' 001(H) ] 
where H = actual pumping height, in meters. 



613 



Underground Mining— Operating Costs 



10,000 



>» 

q 


1.000 


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L. 

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a. 




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CO 

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100 



10 



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- Y L = 0.304(X)°' 757 

0.992 
Y s = 0.1 31 (X) 

0.766 
■ Y E = 0.167(X) 

600 <X< 20,000 






































































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100 1,000 10,000 100,000 

PUMPING RATE, cubic meters water per day 

5.2.5.12.1. Water and drainage system 
DRAINAGE AND DISPOSAL SYSTEM 



611 

5.2. UNDERGROUND MINING— OPERATING COSTS 

5.2.5. MINE PLANT GENERAL OPERATIONS 

5.2.5.12.2. WATER AND DRAINAGE SYSTEM 

WATER SUPPLY SYSTEM (MAKEUP WATER) 

Operating costs for water systems supplying up to 125 m^/h, typical of an under- 
ground mine or a small mine and mill complex, are calculated from this section. 
Operating costs for larger joint-use mine-mill systems are calculated in section 
7.1.8.14 (IC 9143). 

If water quantity requirements are known and are less than 125 nH/h, consult the 
base curves directly. If water quantity is not known, mine requirements (Y), cubic 
meters water per hour, may be estimated using the equations below. Mill require- 
ments can be estimated from section 7.1.8.14.2 (IC 9143). Water volume required 
for an underground mine is dependent on the principle type of drilling equipment 
used, the major water user in underground mines. 

Air -leg drills: 

Water requirement 1 Y( w AIR-LEG DRILL > = 0.049(X 1 ) * 889 

Jumbo and DTH drills: 

Water requirement 1 Y( w jUMBO/DTH DRILL > = 0.025 (X^ - 749 

where X^ = ore mined, in metric tons per day. 

1 Daily water quantity = m^/h x 16 operating h/d. 

Operating costs for an isolated mine (i.e., no adjacent mill) are derived directly 
from the base curves. For a joint-use system, combine mine and mill water require- 
ments and derive the total operating costs from the appropriate curve. 

BASE CURVES 

Total cost is the sum of three separate cost curves (labor, supplies, and equipment 
operation) having mine water requirements (X), in cubic meters per day. The curves 
are valid for operations between 40 and 2,000 m^, operating two shifts per day. 
These costs consist of charges for the maintenance and repair of pumps as well as 
the electric power to run them and infrequent pipeline repair. 

(L) Labor Operating Cost (Y L ) = 2.058(X)°* 444 

The operating labor costs are distributed as follows: 

Direct labor 0% 

Maintenance labor 100% 

Labor operating curve component costs are distributed 32% for pump repair and 
maintenance and 68% for pipeline repair and maintenance. 

The operating labor costs are based on straight days pay and consist of the fol- 
lowing typical range of personnel: 



612 

Av salary 
per hour 
(base rate) 
Maintenance and 
repair labor 100% $17.98 

Average wage for maintenance labor is $17.98 per worker-hour (including burden 
and average shift differential). 

(S) Supply Operating Cost (Y s ) = 0.680(X) * 627 

The supply cost consists of 51% pipeline repair parts and 49% electric power. 

(E) Equipment Operating Cost (Y E ) = 0.150(X) 0,658 

The equipment operating cost consist of 95% for pump repair and mainten- 
ance parts and 5% for lubrication. 

ADJUSTMENT FACTORS 

Joint-Use After deriving the joint-use water system operating cost from the appro- 
priate curve using the combined mine and mill water quantity requirements, allo- 
cate mine operating cost versus mill operating cost based on the percentage of 
water quantity demand (i.e., if the mine requires 10% of the total quan- 
tity, operating cost is split 10% mine and 90% mill). 

Purchased Water Factor On occasion, purchase of water from a nearby municipal water 
system is a viable alternative for a mine. If this is either the present case 
or is being evaluated as a possible water source, the water purveyor charges 
would be the sole operating cost. The evaluator should contact the local supp- 
lier to determine what the actual charges would be. 

Shift Factor Curve costs should be reduced 50% for a one-shif t-per-day operation 
and increased 50% for a mine operating three shifts per day. 



613 



Underground Mining— Operating Costs 



100 



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> 


/ 












/ 


/ 
























/ 






■4 


<y 


























<*f 


y 


















0.444 - 
Y L = 2.058(X) 

0.627 
Y s = 0.680(X) 

, . 0.658 L 
Y E = 0.150(X) 

40 <X< 2.000 






































l \ i i iii 



10 100 1,000 

VOLUME, cubic meters water per day 

5.2.5.12.2. Water and drainage system 
WATER SUPPLY SYSTEM (MAKEUP WATER) 



10,000 



614 

5.2. UNDERGROUND MINING—OPERATING COSTS 

5.2.6. GENERAL EXPENSE 

ADMINISTRATIVE COSTS 

The general expense curve for underground mining administrative salaries and wages 
is intended to cover the supervision and various other administrative functions re- 
quired for underground mines of varying sizes. The number of administrative employ- 
ees varies from 3 to 4 persons at a smaller mine (100-300 mtpd) to as many as 40 or 
more in large mines (7,000 mtpd and up). The total daily cost is the sum of three 
cost curves (labor, supplies, and equipment operation) based on a production rate 
(X), in metric tons ore per day. The curves are valid for operations between 100 to 
50,000 mt, operating two shifts per day. 

5.2.6.1. ADMINISTRATIVE SALARIES AND WAGES 

BASE CURVE 

(L) Administrative Salaries and Wages (Y L ) = 33.293(X) ' 586 

The operating labor costs consist of the following typical range of personnel: 

Small Large Av salary 

(100 to (7,000 to per hour 

7,000 mtpd) 50,000 mtpd) (base rate) 

Supervision; mine, maintenance.... 54% 55% $23.72 

Clerical; secretarial, accounting. 13% 10% $12.84 

Engineering and geology 21% 12% $23.70 

Assaying 8% 9% $16.62 

Purchasing, warehousing 2% 11% $16.66 

Safety, first aid, security 2% 3% $20.70 

Average administrative labor cost is $20.95 per worker-hour (including burden 
and average shift differential). 

ADJUSTMENT FACTOR 

Burden Factor If the burden is other than 32%, multiply the cost obtained form the 
curve by the following factor: 

Burden factor (F L ) = [ (1+B)/ (1.32) ] 

where B = known burden expressed as a decimal. 



615 
5.2.6.2. ADMINISTRATIVE PURCHASES 

Daily operating costs for administrative supplies include the mine's portion of 
electric power and heating bill for office, assay laboratory, repair shops, and 
warehouses; supplies for assaying mine samples; and telephone, postage, and station- 
ary costs. Costs also included are engineering, first aid, and safety supplies; 
travel and entertainment expenses; miscellaneous fees, dues, and donations; and 
small tool replacement costs. 

BASE CURVE 

(S) Administrative Purchases (Y s ) = 33.238(X) ' 380 
The supply cost consists of 

Electrical power and heat 51% 

Mine sample assaying 24% 

Telephone, postage, and stationary 6% 

Engineering, first aid, and safety supplies... 5% 

Travel and entertainment 9% 

Miscellaneous fees, due, and donations 2% 

Small tools 3% 



5.2.6.3. ADMINISTRATIVE EQUIPMENT OPERATION 

Administrative equipment operating costs include the expense for operation of vehic- 
les and equipment used by the administrative and warehousing staff such as pickup, 
crew cab, flatbed trucks, and forklifts. 

BASE CURVE 

(E) Administrative Equipment Operation (Y E ) = 0.234(X) 0,791 

The equipment operating cost consists of 3% for repair and overhaul parts, 93% 
for fuel and lubrication, and 4% for tires. 



616 



Underground Mining— Operating Costs 



1,000,000 c 



100,000 



o 
-a 


10,000 






tfl 




JO 

~o 

T3 


1,000 


1-^ 

o 
o 


100 



10 



. 










, 





















■ 

5.2.6.1. Y L = 33.293(X) 

, v 0.380 

5.2.6.2. Y s = 33.238(X) 

: 5.2.6.3. Y E = 0.234(X)°' 791 
100 <X< 50,000 










































































































-«<i 


































-, -/\B* 


















• .o S 


o\o 




























l\.w e ^ 






















\ ^ 


s- 










^oses 












5.1^ 


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^an»"; 












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— 


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.2- 


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^ 


























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k o9 8< ' 




















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jjjw 


l^ evl 






















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r i e l 




























-=^ *<$*" 


























--' 


fTA( oV 






















Irv 


5>- 






















<> 6 


$• 


























■r 























































































































































100 1,000 10,000 

ORE, metric tons per day 

5.2.6.1. —3. General expenses 
ADMINISTRATIVE SALARIES AND WAGES 

ADMINISTRATIVE PURCHASES 
ADMINISTRATIVE EQUIPMENT OPERATION 



100,000 



617 
5.2. UNDERGROUND MINING— OPERATING COSTS 
5.2.7. INFRASTRUCTURE 
5.2.7.3. TOWNSITE-CAMPSITE 

CAMPSITE 

Where conditions such as remote location or seasonal operation require a single 
status-campsite (i.e., room, board, and recreation facility), the daily operating 
cost should be derived from the following base cost curve. Today a caterer is 
usually employed to provide board, housekeeping, and recreation supervision. Heat, 
lights, garbage disposal, and plant maintenance are usually provided by the owner. 

BASE CURVE 

The total daily cost is derived from the supply curve based on the total number of 
persons who occupy the campsite (X). The curve is valid for campsites occupied by 
20 to 1,000 persons. All persons receive both room and board. 

(S) Supply Operating Cost (Y s ) = 37.143(X) * 897 

Small Large 

(20 to (450 to 

450 persons) 1,000 persons) 

Board 61.5% 59.0% 

Housekeeping and recreation. 23.9% 23.0% 

Heat 6.4% 9.0% 

Light 2.4% 3.4% 

Maintenance 5*8% 5.6% 

If the number of persons requiring board varies from the number of persons requiring 
room, use the following equation: 

(S) Supply Operating Cost (Y s ) = [37.143(X)°* 897 ] [0.60(B/R)+0.40(R) ] 
where B = number of persons requiring board only, 
and R = number of persons requiring room only. 

These curves are based on a caterer who provides all necessary personnel for food 
service, housekeeping, distribution and collection of mail, monitoring recreation, 
etc., and all necessary supplies, such as pots, pans, dishes, silverware, sheets, 
pillowcases, blankets, waste cans, recreation supplies, janitorial supplies, food, 
etc. The evaluator must add the cost for local, State, or Federal taxes where 
required. 

ADJUSTMENT FACTORS 

Owner-Operator Factor When the facility is owner-operated rather than catered, 
multiply the cost obtained from the curve by the following factor: 

Owner-operator factor (Fn) = 0.93 



618 

Diesel Power Factor When the electric power is provided by a diesel-electric system 
rather than a power line grid, multiply the cost obtained from the curve by the 
following factor: 

Diesel power factor (Fn) = 1.04 

TRAILER COURT 

Where conditions such as remote location or lack of available housing require insta- 
llation of a family trailer court complete with utilities, laundromat, recreation 
facilities, blacktop driveway, and possibly swimming pool, the daily operating cost 
should be derived from the following two curves. The total daily cost is derived 
from the supply curve, based on the total number of trailer spaces, (X), required. 
The curve is valid for trailer courts with 20 to 1,000 units. 

BASE CURVE 

The curves are based on trailer and facility maintenance, insurance, casualty 
insurance, supervisory and worker wages, plus overhead, heat, and lights. 

(S) Supply Operating Cost (Y s FREE ) = 49. 514(X) * 590 

Company-owned mobile homes, spaces, and facilities where the trailers and spaces 
are free to supervisors and workers. The company pays all operating costs on 
the facility. 

(S) Supply Operating Cost (Y s RENTED^ = 1,676. 049(X)~ ' 716 

Company-owned mobile homes, spaces, and facilities where the trailers and spaces 
are rented to supervisors and workers. The company pays for any loss on the 
facility. 

ADJUSTMENT FACTORS 

Swimming Pool Factor When the trailer court does not provide a swimming pool, mul- 
tiply the curve (Yg FREE^ by the following factor: 

Swimming pool factor (Fp free) = 0.82 

When the spaces and trailers are rented and the trailer court has 52 or more 
units it will show a profit. If there are less than 52 units, multiply the 
curve (Ys RENTED' by the following factor: 

Swimming pool factor (Fp RENTED^ = 0.05 

Trailer Space Rental Factor When the occupants rent trailer space for their own 
trailers, multiply the curve (Yg pREE^ by the following factor: 

Trailer space rental factor (Fp FREE^ = 0.36 

PERMANENT HOUSING 

Company totally owned and operated townsites are decreasing in number because of 
their high cost and persistent social problems. The trend seem to be toward small 
family housing facilities combined with an existing nearby city. 



619 

Large tovmsite permanent housing: 

Today, the military appears to be the greatest user of this type of facility. 
The Air Force provides housing to its officers and enlisted personnel. The 
Government pays for housing and facility maintenance, all utilities, supervisor, 
and worker labor, etc. The average operating costs for 1983 were: 

McCord Air Base - 993 units: $6.66 per day per unit. 
Fairchild Air Base - 1,580 units: $56.93 per day per unit. 

Small townsite permanent housing 

These facilities are generally rented to their occupants at a modest fee with 
the company paying for the general maintenance, insurance, and taxes. Rent is 
applied to the capital investment. A new housing facility (175 family units) in 
the western United States, cost the company fc0.98 per day per unit to maintain. 

BASE CURVE 

The total daily cost is derived from the supply curve based on the total number of 
housing units, (X), required. The curve is valid for 140 to 1,900 housing units. 

(S) Supply Operating Cost (Y s ) = 0.008(X) * 948 



620 



Underground Mining— Operating Costs 



100,000 



>» 

o 
•o 

i_ 

© 

a. 

» 

"o 



in 
O 
o 



10,000 



1,000 



100 











































































































/ 
































■a* 


y 












































A 


y 


































y 






































Y s = 37.1 43(X)°' 897 
20 <X< 1,000 
















I III 



10 



100 
RESIDENTS, total number of persons 



1,000 



5.2.7. 3.a Townsite- Campsite 
CAMPSITE 



621 



Underground Mining— Operating Costs 



10.000 



o 
-a 

L. 

<s 

Q. 



O 

T3 

CO 

o 
o 



1,000 



100 



10 



■■ J ■ r r- ■ 














Free 

, x 0.590 
_ Y s = 49.51 4(X) 

20 <X< 1,000 


















































\*p^^ 
















S^ 


































































































S 


















->. 


^ 


>s 




























Rented 

• ,-0.716 
Y S =1,676.049(X) 

20 <X< 1,000 






^e<y 




















l i i 



10 



100 
TRAILERS, total number of spaces 



1,000 



5.2.7.3. b Townsite-Campsite 
TRAILER COURT 



622 



100 



10 



o 

i_ 
o 

Q. 

m 
o 

T3 



o 
o 



0.1 







Ur 


iderground Mining— Operating Costs 




























































































y 




















y 


































,^J 


5/ 
















<b 


€>/ 




















































































































, A 948 

Y s = 0.008(X) 
140 <X< 1,900 














i 



100 



1.000 
UNITS, total number of houses 



10,000 



5. 2.7. 3. c Townsite*Campsite 
PERMANENT HOUSING 



623 

5.2. UNDERGROUND MINING—OPERATING COSTS 

5.2.7. INFRASTRUCTURE 

5.2.7.4.1. WASTEWATER TREATMENT 
CLARIFICATION 

This operation is a solids-contact clarifier used for water clarification by preci- 
pitation and/or coagulation. This cost curve is intended to remove suspended solids 
formed after final neutralization of out-of-pipe effluent. The curves include all 
principal costs associated with the operation of the unit. It does not include 
costs for sludge removal. The unit can selectively or simultaneously remove turbi- 
dity, color, organic matter, manganese, iron, alkalinity, taste, and odor. 

The total daily cost is the sum of three separate cost curves (labor, supplies, and 
equipment operation) based on a tank diameter (X) , in meters. The curves are valid 
for tank diameters between 2.74 to 45.72 m (cross-sectional area ranging from 5.9 to 
1,642 wr) , operating three shifts per day. Costs are based on an overflow rate of 
0.377 (L/s)/m 2 . 

BASE CURVES 

(L) Labor Operating Cost (Y L ) = 38.931(X)°* 119 

The operating labor costs are distributed as follows: 

Direct labor 100% 

Maintenance labor 0% 

The labor costs consist of the following typical range of personnel: 

Small Large Av salary 

(5.72 to (75 to per hour 

75 m) 1,661 m) (base rate) 

Laborer 60% 54% $13.66 

Laboratory 40% 46% 15.89 

Average wage for labor is $14.43 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Cost (Y s ) = 1 .083(X) °« 633 

The supply curve consists of electric power and maintenance supplies. 

Small Large 

(5.72 to (75 to 

75 m) 1,661 m) 

Electric 60% 34% 

Maintenance 40% 66% 

(E) Equipment Operating Cost (Y E ) = 0. 505(X) 1 - 064 

The equipment operation curve consists of 100% for repair parts and covers the 
daily operation cost for all clarification equipment. 



624 

ADJUSTMENT FACTOR 

Flocculant Factor Normally, additional flocculants are not needed in the mine waste 
water treatment after neutralization. However, if polymers are needed or used, 
add the following factor to the supply cost obtained from the curve: 

Supply factor (F s ) = 0.334(D) 1 * 812 

where D = clarifier tank diameter, in meters. 

The polymer is based on a standard dosage of 1.5 mg/L influent and an average 
polymer cost of 2. 10 /lb. 



625 



Underground Mining— Operating Costs 



100 



o 
•a 



o 

a 

n 

'— 
_o 

o 
•o 



CO 

o 



10 































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1-1 f 
















I 


^— — — ' 






















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/ 
















*f 






































^ 
















^ 














&A 






, N 0.119 
Y L =38.931(X) 1 

, 0.633 
Ys= 1.083(X) 

, J. 064 J 
Y E = 0.505(X) 

i 
2.7 <X< 46.0 
















/ 












I III! 



10 
TANK DIAMETER, meters 



100 



5.2.7.4.1. Wastewater treatment 
CLARIFICATION 



626 

5.2. UNDERGROUND MINING—OPERATING COSTS 

5.2.7. INFRASTRUCTURE 

5. 2. 7. A. 2. WASTEWATER TREATMENT 
NEUTRALIZATION 

The Environmental Protection Agency's publication EPA-600/2-82-00M "Treatability 
Manual, Vol. IV, Cost Estimating," April 1983, was the source of cost development. 
One is referred to this manual if further detail in neutralization costs is needed. 
Additionally, other waste water treatment methods are costed in this EPA manual. 

The operating cost curves are used when neutralization of waste water effluent (out- 
of-pipe) is required. The basic design variable is waste water flow. It is assumed 
that flow equalization is provided by a tailings pond. The costs apply to the neu- 
tralization of either acidic or basic wastewater streams originating from mine, 
mill, or combined mine and mill after it flows out-of-pipe from the central impound- 
ment pond. In most mining operations further waste water treatment costs are not 
required. The system consists of chemical addition and two-stage neutralization 
tanks. It is assumed that pH and suspended-dissolved solid content of influent to 
the system will be unknown at this level of costing. Basis of design uses a stan- 
dard dosage of 100 mg/L lime and 100 mg/L acid to achieve a pH of 7.0 over a pH 
range of 6.5 to 8.0. 

BASE CURVES 

The total daily cost is the sum of three cost curves (labor, supplies, and equipment 
operation) based on the waste water flow rate (X), in liters of effluent to be 
treated per second per day. The curves are valid for operations between 0.001 to 
876 L/s (22.8 gal to 20 million gal/d), operating three shifts per day. The curves 
include all costs associated with the operation of a neutralization system such as 
labor, lime, acid, power, service water, and laboratory expenses. 

(L) Labor Operating Costs (Y L ) - 84.85(X) * 000 

The operating labor costs are distributed as follows: 

Direct labor 100% 

Maintenance labor 0% 

Trie labor costs consist of the following typical range of personnel: 

Av salary 

per hour 
(base rate) 

Laborer 89% $15.80 

Laboratory 11% 15.80 

The average labor cost is $15.80 per worker-hour (including burden and average 
shift differential). 

(S) Supply Operating Costs (Y s 0.001-8.76 L/s> = 24 - 13(X ^ An 50 

CY S 8.76-876 L/s> = 21.282(X) ' 997 



627 



The supply costs consists of electric power, water, and chemicals and lime in 
the following proportions: 



Electric power...., 
Water 

Chemicals and lime, 



Small 


Large 


(0 to 


(8.76 to 


8.76 L/s) 


876 L/s) 


3% 


2% 


80% 


89% 


17% 


9% 



(E) Equipment Operating Costs (Y E Q01-8 76 L/s) = 8.44(X) ' 099 

(Y E 8!76-876 L/s> = 1.801(X)0-563 
The equipment operation curve consists of 100% for repair parts and covers the 
daily operation cost for all neutralization equipment. 



628 






Underground Mining— Opera-ting Costs 



1,000 



o 
•o 

l_ 

V 
Ql 

CO 

i_ 
_D 

"o 

X) 



O 
O 



100 



0.1 



0.01 







































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/ 


































j 


/' 
























Labor 










/ 




































































A 




































y 




































/ 


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_ nr 


atior 


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3nx 
























tquip^ 




















































































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c 


Si 


^ 






































/ 




































/ 


































/ 


7* 


































y 


/ 


















Y. 


, N 0.000 
= 84.85(X) 

0.950 . 


/ 


s 




















L 


/ 






















Yr- 


= 24.1 3(X) 
























5 


























.0.099 . 
























Y E 


= 8.44(X) 
























I 


0. 


OC 

.... 


)1 


<x< 


: 8. 


7€ 

- 





0.001 0.01 0.1 1 

FLOW RATE, liters effluent treated per second 

5.2.7.4.2.a Wastewater treatment 
NEUTRALIZATION 



10 



629 



Underground Mining— Operating Costs 



100,000 



10,000 - 



>« 

a 
■a 

o 1,000 
a 

CO 

L. 

_o 

"o 
■a 



100 



CO 

o 
o 



10 



1 1111 




















0.000 
- Y L = 84.85(X) 

■ Y s = 21.282(X) 

, N 0.563 

■ Y E =1.801(X) 

8.76 <X< 876 






























































































^^ 
















\ P <=> ^ 














■bv 


** 


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abc 


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S 


■cjgS 








































































































; 































































10 100 

FLOW RATE, liters effluent treated per day 

5.2.7.4.2.D Wastewater treatment 
NEUTRALIZATION 



1,000 



630 



APPENDIX. —REFERENCE TABLES 



Table A-l. - Average compressive strength of some common rock types 
(Compressive strength determined parallel to bedding where applicable) 



Rock type 


psi 


2 Pa 


Rock type 


psi 


2 Pa 


Tactite 


57,000 
33,000 
32,400 
31,700 
30,800 
29,900 
28,200 
27,500 


393.015 X 10 6 
227.535 X 10 6 
223.398 X 10 6 
218.572 X 10 6 
212.366 X 10 6 
206.161 X 10 6 
194.439 X 10*? 
189.613 X 10 


Slate 


27,100 
16,300 
15,900 
14,200 
13,900 
10,400 
7,800 


186.855 X 10 6 


Chert 


Shale 


112.389 X 10 6 

109.631 X 10 6 

97.909 X 10 6 

95.841 X 10 6 




71.708 X 10 6 




53.781 X 10 6 



1 Compilation of data from BuMines RI's 3891, 4459, 4727, and 5130. 
2 Newtons per square meter. 



Table A-2. - Bulk density 



Material 


lb/ft 3 


kg/m 3 


Material 


lb/ft 3 


kg/m 3 


Asbestos Ore. . . 


81 


1,297.5 




200-270 


3,203.7-4,325.0 


Bauxite Ore. . . . 


80- 90 


1,281.5-1,441.5 


Magnetite Ore. . 


315 


5,045.8 


Chrome Ore 






Manganese Ore. . 


125-140 


2,002.3-2,242.6 


(Chromite) .... 


125-140 


2,002.3-2,242.6 


Molybdenum Ore. 


107 


1,714.0 




120-150 


1,922.2-2,402.7 




90-150 


1,441.6-2,402.7 


Ilmenite Ore. . . 


140 


2,242.6 




160 


2,562.9 




100-200 


1,601.8-3,203.7 









Table A-3. - Major slurry pipelines and their characteristics 



631 



Material 
bauxite.... 
beach sand, 
coal 



copper cone..., 



gilsonite 

gold tailings., 
gold quartz.... 
hematite 

iron sands 

limestone 

magnetite...... 

phosphate 



Pomp Type 



Length, 
km 



Edam., 



nm 



^felocity, 
m/sec 



Pressure, 
kg/cm^ 



S.G. 



Particle 
Size, mm 



Solids 



Plow, 
L/min 



plunger 

centrifugal 

piston 

piston 

piston 

plunger 

plunger 

plunger 

plunger 

centrifugal 

Mars pump 

plunger 

plunger 

centrifugal 

piston 

piston 

piston 

plunger 

gravity 

plunger 

plunger 

centrifugal 

plunger 



73 

3 

174 

440 

1,667 

27 

111 

a 

116 

11 
mine hoist 
403 

48 
8 

27 

92 

10 

86 

48 

26 

32 

6 

113 



200 
508 
273 
457 
965 
168 
114 
143 
168 
200 
200 
508 
508 
219 
194 
273 
219 
244 
219 
273 
219 
457 
244 



2.1 
4.6 
1.5 
1.7 
1=7 
1.7 
1.5 
1.8 
1.2 
1.4 
1.4 
1.7 
1.7 
4.9 
1.8 
1.4 
1.5 
1.7 
1.8 
1.8 
1.8 
4.2 
2.1 



NA 

21 

86 

126 

NA 

141 

162 

143 

144 

80 

80 

141 

NA 

33 

90 

143 

68 

141 

4 

1,230 

101 

14 

1,900 



2.3 

2.70 

1.40 

1.40 

1.40 

4.3 

4.3 

4.30 

1.05 

2.7 

2.7 

4.9 

4.9 

4.9 

2.70 

2.70 

2.70 

4.9 

4.9 

4.9 

4.9 

3.2 

0.3 



0.4 

2.3 

1.2 

2.3 

2.3 

0.2 

0.15 

0.15 

4.7 

0.1 

0.6 

0.07 

0.07 

0.6 

0.6 

0.4 

0.3 

0.15 

0.10 

0.10 

0.07 

1.2 

0.3 



55 
35 
52 
50 
50 
65 
65 
65 
46 
45 
50 
60 
60 
60 
60 
61 
60 
60 
60 
60 
60 
40 
65 



3,785 

52,990 

6,245 

17,030 

64,350 

1,820 

520 

720 

1,250 

3,400 

2,200 

18,930 

18,930 

8,710 

3,100 

3,260 

2,350 

4,390 

4,160 

6,430 

4,160 

37,850 

7,950 



NA Not available 



^.U.S. GOVERNMENT PRINTING OFFICE; 19 8 7-189-317/70076 



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